Professional
Added to YB: 2024-03-07
Pitch date: 2024-03-06
SQM [bullish]
Sociedad Química y Minera de Chile S.A.
+72.77%
current return
Author Info
No bio for this author
Company Info
Sociedad Química y Minera de Chile S.A. produces and sells specialty plant nutrients, and iodine and its derivatives worldwide.
Market Cap
$20.5B
Pitch Price
$46.56
Price Target
95.00 (+18%)
Dividend
2.94%
EV/EBITDA
17.36
P/E
39.13
EV/Sales
5.29
Sector
Chemicals
Category
growth
Sociedad Química y Minera de Chile S.A.: Supply Discipline Will Support Lithium Price Recovery
SQM undervalued with $95 PT vs trading at half; bullish on lithium, iodine, fertilizers. Despite '24 lithium sales dip from pricing pressures, disciplined supply hints at year-end deficit. Holds high-grade Salar de Atacama deposit, expanding; Mount Holland and Azure Minerals deals boost Aus presence. Largest global iodine producer, banking on high-purity lithium demand. Narrow Moat, ESG challenges, political risks in Chile JV. Strong balance sheet; management invests in cost-effective lithium production, capacity expansion, eyeing EV-driven growth.
Read full article (11 min)