Methanex Shares Increasingly Tied to Iran Conflict, RBC Says

MT Newswires Live04-02

Methanex (MEOH) is benefiting from rising methanol prices due to the Iran conflict that could normalize by year-end, RBC Capital Markets said in a Wednesday note.

With a year-to-date return of 49%, or 17% since the start of the Iran conflict, the shares are reflecting the improving underlying fundamentals, the report said.

The note pointed to possible accelerated deleveraging and share buyback timeline, as well as some methanol pricing upside from the ongoing conflict.

RBC raised its price target to $65 from $55, while downgrading the stock to sector perform from outperform as the shares are increasingly becoming linked to the conflict.

"Our $10 price target increase reflects some elevated near-term methanol prices that could mostly normalize by year-end," the report said.

Price: 59.27, Change: +0.23, Percent Change: +0.39

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment