Methanex Raises Methanol Price Amid Supply Disruptions.

Raymond James has raised Methanex's (MEOH) price target to $45 from $40, maintaining an Outperform rating, due to unexpectedly strong methanol price trends. Analyst Steve Hansen cites significant supply disruptions in major producing regions, leading to higher spot and contract methanol prices. Investors are advised to be aware of these developments as Methanex navigates the evolving market landscape.

Raymond James has increased its price target for Methanex (NASDAQ:MEOH) to $45 from $40, while maintaining an Outperform rating. The move comes in response to unexpectedly strong methanol price trends. The firm cited significant supply disruptions in major producing regions, including Iran, as the primary reason for the target increase. Both spot and contract methanol prices have benefited from these disruptions, leading to a more favorable pricing environment.

Analyst Steve Hansen noted that the new target aligns with broader analyst sentiment, with targets ranging from $33 to $65. Methanex, the world’s largest producer and supplier of methanol, has seen its stock trading at attractive valuations with a P/E ratio of 10.1x. The company has also received regulatory clearance for its acquisition of OCI Global’s methanol business, 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.

Raymond James has adjusted its 2025 and 2026 earnings estimates for Methanex to reflect the improved pricing environment. The 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.

While Raymond James has raised its price target, other analysts have shown varying sentiments. Piper Sandler upgraded Methanex’s stock rating to Overweight, raising the price target to $48. 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. 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. Investors are advised to be aware of these developments as Methanex continues to navigate the evolving market landscape.

References:
[1] https://www.investing.com/news/analyst-ratings/methanex-stock-price-target-raised-to-45-from-40-at-raymond-james-93CH-4135439
[2] https://www.theglobeandmail.com/investing/markets/stocks/RJF/pressreleases/33369355/wells-fargo-sticks-to-their-hold-rating-for-raymond-james-financial-rjf/
[3] https://www.investing.com/news/analyst-ratings/marathon-petroleum-stock-rating-downgraded-by-raymond-james-despite-price-target-increase-93CH-4134669
[4] https://www.icis.com/explore/commodities/chemicals/methanol/