BofA and Berenberg Raise SQM Price Target Amid Lithium Price Surge
BofA and Berenberg have both increased their price targets for SQM to $53 amid a 150% rise in lithium prices since June 2022. This rebound has significantly boosted SQM's projected EBITDA for 2026, but concerns remain regarding overvaluation in a potentially peaking market.
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BofA has raised its price target for Sociedad Química y Minera de Chile S.A. (NYSE:SQM) to $53 from $49 while maintaining an Underperform rating. The firm's 2026 EBITDA estimate for SQM has increased by 41% to $3.6 billion, exceeding consensus expectations by 17%.
In contrast, Berenberg also lifted its price target for SQM to $53 from $47, affirming a Hold rating. Both firms indicate that while lithium prices have surged, the current valuations for SQM and its peers may reflect inflated expectations. The anticipated peak in lithium prices in 2026 raises concerns about future corrections.
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