Sociedad Quimica recent share rally due to 'hope,' says Citigroup

theflyonthewall.com

Citigroup attributes the recent rally in shares of Sociedad Quimica to "hope" of a potential acquisition by Potash (POT) after Potash's CEO noted at a conference that the company has long-term interest of increasing its stake in SQM. Citi views the comments as in-line with Postash's previous statements and says execution of a greater stake would be limited by current bylaws. Citi believes expectations for better lithium demand from Tesla's new battery plant could also be moving SQM higher. The firm notes that the impact from the plant would likely occur in 2017-2020. It keeps a Neutral rating on SQM.

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