SQM initiated with a Buy at Citi

Citi initiated coverage of SQM with a Buy rating and $85 price target. SQM has been an underperformer in the local market and current valuations “seem to be on the bottom,” the analyst tells investors. Citi believes the current share discount to be “excessive,” citing what it sees as solid mid-term fundamentals in the lithium market and its estimate that the stock is currently priced below the value of the company’s cash flows, the analyst added.