SQM downgraded to Hold from Buy at Deutsche Bank

As previously reported, Deutsche Bank analyst Corinne Blanchard downgraded SQM to Hold from Buy with a price target of $52, down from $58. While the recent memorandum of understanding announced between SQM and Codelco has “removed the overhang and uncertainty that has weighted down the stock regarding SQM’s license expiration and potential renewal,” the firm believes the current terms of the proposed agreement are “not favorable to SQM in the medium to long term.” Coupled with the firm’s more neutral stance on the Lithium industry in 2024 and beyond, and Deutsche Bank sees “limited prospective upside to SQM at this time.”