SQM upgraded to Neutral from Underperform at BofA

BofA upgraded SQM to Neutral from Underperform with a price target of $85, down from $90, which provides 15% upside potential. Lithium prices have entered a "downcycle," mainly driven by increased confidence in sufficient supply balances over the near and medium-term, but the stock already reflects this and is trading at a "discounted valuation," even assuming normalized earnings, the analyst tells investors in a research note. The firm does see room for major estimate cuts by the Street and views SQM’s risk/reward as more balanced at current share levels.