Scotiabank raised its price target for Sociedad Quimica y Minera (SQM) to $104.00 from $93.00. The bank reiterated its Sector Outperform rating for the lithium producer. This adjustment follows a 45% year-to-date increase in global lithium demand through May.
Global lithium demand is currently outstripping production growth. SQM is reporting record sales volumes across its key business areas. The company is expanding its production capacity in Chile to capitalize on the tightening market.
The upgrade follows SQM’s second-quarter earnings report, which exceeded Wall Street estimates for both revenue and earnings per share. These results were driven by record lithium sales volumes and higher market prices.