Sociedad Quimica y Minera de Chile SA (NYSE:SQM) is one of the top lithium stocks to buy now, with BofA Securities raising the price target to $43.50. The stock rallied 28% in August, outperforming a 16% increase in spot lithium carbonate prices in China. Second-quarter results exceeded expectations, with earnings per share of $0.79 and revenues of $2.08 billion.

The rally in Sociedad Quimica y Minera de Chile stock comes as sentiment improves and the sector shifts from bearish to bullish. BofA Securities notes the positive impact of a significant increase in Lithium Carbonate prices on the industry, leading to upward earnings revisions and short covering. However, concerns remain about the dependence on additional Chinese supply cuts for further lithium price upside.

Sociedad Quimica y Minera de Chile SA (NYSE:SQM) is a Chilean chemical company that is the world’s largest lithium producer. It supplies plant nutrients, iodine, lithium, and industrial chemicals, producing lithium carbonate and lithium hydroxide used in cathode material for batteries, lithium chloride, and other lithium derivatives.

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Read more at Yahoo Finance: BofA Securities Lifts Sociedad Quimica y Minr de Chile SA (SQM) Price Target amid Lithium Price Surge