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SQM +2.5% on BofA Merrill upgrade as best positioned lithium player

Published 09/13/2017, 09:19 AM
© Reuters.  SQM +2.5% on BofA Merrill upgrade as best positioned lithium player
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  • Sociedad Quimica y Minera de Chile (NYSE:SQM) +2.5% premarket after BofA Merrill Lynch upgrades shares to Buy from Neutral with a $65 price target, hiked from $49, as the "best positioned lithium story" should extend the rally that has lifted shares nearly 8% this week and 27% higher over the past month.
  • BAML notes the U.K., France, Germany and China have all announced plans to eventually ban sales of gasoline and diesel cars and replace them with electric vehicles, and calculates that roughly half of marginal demand for cars in the world will be for EVs in 15-20 years.
  • BAML goes on to forecast implied global demand for lithium of 640K tons by 2025, more than triple current demand, and the firm says SQM is the best positioned player in the lithium industry.
  • Now read: Is 100 Tons Of Lithium Carbonate Per Hectare A Good Rule Of Thumb For Lithium Projects Potential In Argentina?


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