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RBC Lifts Methanex's Price Target to US$70.00 from US$65.00

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-- RBC Capital Markets maintained its sector-perform rating on the shares of Methanex (MX.TO., MEOH) and raised its price target to US$70.00 from US$65.00 following the Wednesday release of the company's first-quarter results.

The higher price target mainly reflects higher methanol prices through 2026, RBC said.

Methanex is poised to realize a very strong second quarter as elevated methanol prices hit the bottom line, according to RBC.

Based on the company's May 2026 non-discounted methanol price, RBC estimated that the company would generate roughly $1.70 per share of free cash flow per month, which would mainly be allocated to debt reduction, and potentially some share buybacks.

However, the main uncertainty is when the Iran conflict will be resolved, and the time it takes for methanol prices to normalize, RBC said.

Price: $85.71, Change: $-3.17, Percent Change: -3.57%

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