Scotia Capital Has Sector Outperform on Sociedad Quimica y Minera de Chile

Scotia Capital is out with a research report on Sociedad Quimica y Minera de Chile SQM and it has a Sector Outperform rating and a $65 price target on shares. In a note to clients, Scotia Capital writes, "We maintain our 1-SO rating on SQM for several reasons: (1) SQM offers protection from a downturn in the potash market, due to its low position on the cash cost curve; (2) SQM has a strong near-term potash growth profile; (3) we expect the company to increase its market share in Brazil over time; (4) we like SQM's leadership in lithium, nitrates, and iodine; (5) we would not be surprised to see SQM begin to develop its potential copper resources over the mid-term; and (6) the natural buyer of SQM, POT, continues to wait patiently for its opportunity." Shares of SQM closed at $58.01 yesterday.