UPDATE: Barclays Upgrades Methanex (MEOH) to Overweight

Barclays upgraded Methanex (NASDAQ: MEOH) from Equalweight to Overweight with a price target of $53.00 (from $39.00).

The analyst comments "Methanex has navigated a challenging past few years: a downcycle + pandemic that required deferring significant growth spending and rebasing the dividend; shares have lagged the S&P Chemicals index by >30% YTD and ~85% over the past 3-year period. While 2021 has seen a sharp rebound in methanol prices (+40% YTD) and Methanex's earnings/cash flow ('21 EBITDA ~3x 2020 levels), MEOH shares continue to trade at a meaningful discount to both historical asset valuation + mid-cycle earnings. We believe the narrative shifts from cash flow concerns to returns, with buybacks likely beginning by early-to-mid 2022. N. American methanol prices are at 7-year highs and yet Methanex's asset valuation is in the 30th percentile of the past decade; we think this provides a compelling dislocation and entry point."

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 $37.91 yesterday.

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