2024-02-18 01:08:10 ET
Summary
- The risk-reward equation swings to SQM's favor after derisking with the LCE prices back to YE21 levels and the new concession term.
- The consensus has largely factored in a prolonged weak scenario and yet still finds upside.
- On US$11kg LCE price (forever) plus lower margins I arrive at a target price of US$48.
- Any rise in EV demand or restocking that moves LCE prices higher may trigger a sector and SQM resurgence.
Summary
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For further details see:
Sociedad Química y Minera de Chile: Why Investors Should Get Back In The Ring