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