Sociedad Quimica y Minera de Chile: B of A Securities maintains Underperform, PT raised to $43.5

Sociedad Quimica y Minera de Chile: B of A Securities maintains Underperform, PT raised to $43.5

Sociedad Quimica y Minera de Chile (SQM) has seen a mixed reception from financial analysts following its latest earnings report. The company reported quarterly adjusted earnings of 31 cents per share for the quarter ended June 30, down from the same quarter last year when the company reported EPS of 75 cents [1]. Analysts had expected earnings of 48 cents per share, and Wall Street's estimates ranged from 30 cents to 68 cents per share [1].

Revenue for the quarter fell by 19.4% to $1.04 billion compared to a year ago, missing analysts' expectations of $1.07 billion [1]. Despite the lower earnings and revenue, SQM's shares have risen by 27.7% this quarter and gained 23.9% so far this year [1].

In a significant development, B of A Securities has maintained its "Underperform" rating on SQM, while raising the price target to $43.5. This move reflects the firm's cautious stance on the company's financial performance and market outlook [2]. The current average analyst rating on SQM shares is "buy," with a breakdown of 9 "strong buy" or "buy," 5 "hold" and 1 "sell" or "strong sell" [1]. The average consensus recommendation for the specialty chemicals peer group is "hold."

Looking ahead, SQM expects higher sales volumes in the coming quarters, with a full-year lithium sales guidance of 20,000 metric tons [2]. The company is targeting 20,000 metric tons of lithium carbonate equivalent production in 2025 and expects to increase iodine production capabilities [2]. Analyst consensus remains cautiously optimistic, with price targets ranging from $35 to $78 per share [2].

Despite the strong earnings report, SQM's stock experienced a 4.53% decline in pre-market trading, closing at $43.01. This drop came after a previous close of $45.05, reflecting investor caution. However, the stock has delivered strong returns over both the last month and quarter, with a year-to-date return of 23.9% [2].

The company's strong current ratio of 2.88 and moderate debt levels support its expansion plans [2]. Continued supply constraints in the iodine market, potential macroeconomic pressures affecting demand, and regulatory approvals impacting future projects are among the risks and challenges facing SQM [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3UC1DP:0-sociedad-quimica-y-minera-de-chile-sa-reports-results-for-the-quarter-ended-june-30-earnings-summary/
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-sqm-beats-q2-2025-forecasts-stock-dips-93CH-4202825