TD Securities Upgrades Methanex (MEOH) to Buy

TD Securities upgraded Methanex (NASDAQ: MEOH) from Hold to Buy with a price target of $69.00 (unchanged).

Analyst Cherilyn Radbourne said, "The share price is off ~15% since we initiated coverage, largely in response to a pullback in methanol prices. Methanol prices have declined sharply from the highs reached in Q4/13 and Q1/14 as industry capacity that was offline has returned to production, but prices appear to be at/near a bottom. At ~$350/tonne, prices in China have reached a level which Argus JJ&A believes is approximately equivalent to production cash costs for the marginal Chinese producer, and recent spot prices in North America ($396–$426/tonne) and Europe ($379–$406/tonne) are approaching levels that would be consistent with typical regional differentials. Notwithstanding the recent correction in methanol price, our view of the industry's medium to long-term fundamentals remains positive. We see the current share price as offering an attractive entry point, with more than 20% potential upside to our target price."

For an analyst ratings summary and ratings history on Methanex click here. For more ratings news on Methanex click here.

Shares of Methanex closed at $57.16 yesterday.

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