BUZZ-Scotia, Deutsche Bank trim lithium miner SQM's PT on weak Q2

Reuters08-23

** Analysts at Scotiabank and Deutsche Bank cut their price targets for SQM after the Chilean lithium miner posts a 63% second-quarter profit slump

** Scotia knocks the PT for SQM's ADRs down to $60 a share from $70, while Deutsche Bank trims its PT to $35 from $36

** SQM's Santiago-listed preferential shares down 1.2% on Thursday while ADRs slip nearly 2.5%. However, prices have remained broadly flat versus before Wednesday's report

** Scotia analysts point to the H1 loss, a capex-heavy schedule - meaning no dividend this year - and flatter expected core earnings from lower lithium prices: "We exit Q2 reporting with a slightly weaker investment case for SQM"

** Scotia says SQM's planned tie-up with state-run copper miner Codelco "remains actively challenged" with shareholders concerned about higher taxes and new union terms

** "We're no longer concerned about Tianqi's stake," it adds, saying the Chinese shareholder's opposition to the tie-up should cause no further roadblocks after rulings from Chile's regulator

(Reporting by Kylie Madry; Editing by Sarah Morland)

((Kylie.Madry@thomsonreuters.com))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment