TD Securities Downgrades Methanex (MEOH) to Hold

TD Securities downgraded Methanex (NASDAQ: MEOH) from Buy to Hold with a price target of $34 (unchanged). Analyst Cherilyn Radbourne noted the stock is up 40% from its recent low and discounting an average methanol price of over $300.00/tonne.

"We are reducing our rating on Methanex Corp. (MEOH-Q, MX-T) to HOLD from Buy as we believe that the company’s recent share price appreciation has outpaced the improvement in the outlook for methanol prices, and we see near-term risk as we believe that the Q1/16 consensus EBITDA estimate will likely come down," said Radbourne.

"Although our forecast assumes an average realized price of $300.00/tonne in 2017 and $325.00/tonne in 2018 and beyond, these assumptions require a meaningful recovery relative to our estimate of $237.00/tonne in Q1/16 and $259.00/tonne in 2016," added the analyst.

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 $32.78 yesterday.

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