SQM price target lowered to $65 from $70 at BMO Capital

BMO Capital lowered the firm’s price target on SQM to $65 from $70 but keeps an Outperform rating on the shares after its Q1 results. The stock remains a “tricky lithium exposure” considering typical commodity volatility, SQM-specific volume vs. price and ramp-up questions, and the potential imminent finalization of the Codelco deal, but its valuation is compelling on expectation that lithium pricing should improve more, the analyst tells investors in a research note. SQM shares are not pricing in “anywhere near reasonable earnings power”, BMO added.