FINWIRES · TerminalLIVE
FINWIRES

Methanex Maintained at Neutral at CIBC Following Q1 Results; Price Target Raised to US$69.00

By

CIBC Capital Markets reiterated its neutral rating on the shares of Methanex (MX.TO, MEOH) while raising its price target to US$69.00 from US$66.00 after the methanol producer reported its first-quarter results.

"We maintain our Neutral rating on Methanex, while raising our price target to $69 (from $66) on a 0.25x increase in our EV/EBITDA valuation multiple (now 7.0x 2027E), reflecting an improved methanol pricing backdrop that should support accelerated deleveraging (1.8x by year-end vs. 4.2x in Q1/26). While we expect eventual normalization of commodity prices, with the Middle East accounting for ~20% of global methanol production (10% Iran and 10% other Middle East), in the case that prolonged supply disruptions persist, we model an upside scenario of $83 for Methanex," analyst Hamir Patel wrote.

(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

Price: $86.05, Change: $-2.83, Percent Change: -3.18%

Related Articles

Mining & Metals

Earnings Flash (BDGI.TO) Badger Infrastructure Solutions Posts Q1 Adjusted EPS US$0.22 Per Share Basic and Diluted

$BDGI.TO
Mining & Metals

Earnings Flash (BDGI.TO) Badger Infrastructure Solutions Ltd. Reports Q1 Revenue US$203.2M, Up 18%; 13% EBITDA Growth

$BDGI.TO
Mining & Metals

Sun Life Financial Reaches Settlement in Principle to Resolve MetLife Class Action; AM Best Affirms Credit Ratings

Sun Life Financial (SLF.TO) Thursday after trade said it has reached a settlement in principle to resolve a class action relating to individual life insurance policies sold and issued by MetLife in the 1980s and 1990s, which Sun Life inherited through acquisitions.This matter does not involve any policies or products sold by Sun Life, the company said.If approved, Sun Life would provide up to $213.5 million settlement value to eligible policyholders, which is expected to result in a charge to first quarter 2026 reported net income of approximately $145 million.The proceedings relate to the interpretation of policy language in the policies, which are subject to an indemnity from MetLife. Sun Life will seek full recourse from MetLife pursuant to the indemnity, if the settlement is approved, it confirmed.Separately, AM Best affirmed the financial strength rating (FSR) of A+ (Superior) and the long-term issuer credit ratings (Long-Term ICR) of "aa" (Superior) of Sun Life Assurance Company of Canada and Sun Life and Health Insurance Company (U.S.), core insurance subsidiaries of Sun Life Financial. AM Best also affirmed the Long-Term ICR of "a" (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IRs) of SLF. The outlook of these ratings is stable.The ratings reflect Sun Life Group's balance sheet strength, which AM Best assesses as strongest, strong operating performance, favorable business profile and very strong enterprise risk management.Sun Life Financial shares are unchanged at US$72.08 in U.S. after-hours trade. It closed up $1.30, to $97.87 on the Toronto Stock Exchange.

$SLF$SLF.TO