SQM upgraded to Overweight from Neutral at JPMorgan

JPMorgan upgraded SQM (SQM) to Overweight from Neutral with a price target of $79, up from $41. The firm is citing a positive lithium price perspective for the next two years while estimating the industry returning to a structural deficit of about 130KT/year over the next five years, driven mainly by a sharp 17% upward revision in ESS demand, the analyst tells investors in a research note. Despite seeing supply reacting to the better demand, the industry supply hiatus is not fully priced in by lithium stocks, the firm added.