Methanex stock price target raised to $45 from $40 at Raymond James

Investing.com - Raymond (NSE:RYMD) James raised its price target on Methanex (NASDAQ:MEOH) to $45.00 from $40.00 on Tuesday, while maintaining an Outperform rating on the methanol producer’s stock. The new target aligns with broader analyst sentiment, as InvestingPro data shows targets ranging from $33 to $65, with the stock currently trading at attractive valuations with a P/E ratio of 10.1x.

The firm cited better-than-expected methanol price trends as the primary reason for the target increase, noting that both spot and contract prices have benefited from protracted global supply disruptions across key producing regions, including Iran.

Raymond James also increased its 2025 and 2026 earnings estimates for Methanex to reflect the improved pricing environment in the methanol market.

The investment firm expressed a constructive view on Methanex based on three key factors: long-term global methanol fundamentals, the company’s recently closed acquisition of OCI Global, and the stock’s discounted valuation.

Methanex is the world’s largest producer and supplier of methanol, a basic chemical used in the production of numerous industrial and consumer products.

In other recent news, Methanex Corporation has received regulatory clearance for its acquisition of OCI Global’s methanol business, with the transaction expected to close on June 27. This strategic move is anticipated to enhance Methanex’s production capacity and geographic reach in the global methanol market. Meanwhile, Piper Sandler upgraded Methanex’s stock rating to Overweight, raising the price target to $48, citing positive outcomes from the last quarter and a favorable midcycle earnings outlook. Conversely, Jefferies maintained a Buy rating but lowered the price target to $45, noting expectations of pricing moderation due to increased supply and economic uncertainty. Raymond James also adjusted its price target for Methanex to $40 from $62, maintaining an Outperform rating despite concerns over weaker global methanol prices and economic challenges. Additionally, JPMorgan initiated coverage with a Neutral rating and a price target of $33, highlighting Methanex’s focus on cost management and geographic flexibility. These developments reflect a complex landscape for Methanex as it navigates market dynamics and strategic growth initiatives.

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