#6 - Sociedad Quimica y Minera de Chile (NYSE:SQM)
Lithium stocks were expected to be attractive investments in 2023. But as supply outpaced demand on declining EV demand, many of these investments dragged down portfolios. Sociedad Quimica y Minera de Chile (NYSE: SQM) was no different. SQM stock is down over 55% in the last 12 months.
The Chilean-based company has a diversified portfolio, but about 75% of its revenue comes from lithium. That could hold the stock price down as lithium prices are expected to be down through at least the first half of 2024.
However, the opportunity for the company comes in its brine asset, the Salar de Atacama, which has the highest lithium concentration in the world. The company is also taking steps to secure more lithium production in Australia and China.
As the lithium supply-demand dynamic flips in its favor, SQM stock is an attractive long-term investment, trading at just 5.4x forward earnings.
About Sociedad Química y Minera de Chile
Sociedad Química y Minera de Chile SA operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders.
Read More - Current Price
- $38.26
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $48.06 (25.6% Upside)
