-- CIBC Capital Markets raised its price target on Methanex Corp. (MX.TO, MEOH) to US$66 from US$59.
Analyst Hamir Patel maintained a Neutral rating on shares of the Canadian methanol company ahead of its Q1 results on April 29.
"We have raised our 2026/2027 EBITDA estimates by ~55%/19% reflecting our assumptions for a period of higher methanol prices arising from disruptions from the conflict in the Middle East," Patel said in a note to clients.
"We also reduced our 2027E EV/EBITDA valuation multiple to 6.75x (lowered by 1.0x), which follows adjustments in mid-March, when we accounted for the initial impact of the conflict by raising the multiple without increasing our estimates," the analyst said.
"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 $80 for Methanex."