SQM price target lowered to $95 from $125 at Deutsche Bank

Deutsche Bank analyst Corinne Blanchard lowered the firm’s price target on SQM to $95 from $125 and keeps a Buy rating on the shares. The analyst sees "near-term turbulences" for the lithium market but is confident into the second half of 2023. Following a couple of months with investor skepticism driven by lithium spot pricing peaking close to $85kg mid-November and fears of a bear cycle around the corner, focus is now heavily shifting to Chinese demand for electric vehicles, Blanchard tells investors in a research note. The analyst says China’s COVID-19 policy ease and the economic reopening impact remain uncertain for now, but demand should further strengthen in the second half of 2023. In the near-term, the cut of the federal electric vehicle subsidies, Chinese New Year festivities and overall economic slowdown are likely to bring a "muted sentiment" in Q1, Blanchard contends.