Methanex, the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Joel Jackson from BMO Capital reiterated a Buy rating on the stock and has a $65.00 price target.
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Joel Jackson has given his Buy rating due to a combination of factors that indicate a positive outlook for Methanex. The company has been operating its Beaumont, Natgas, and G3 facilities near full capacity for several months, which supports strong free cash flow generation and deleveraging efforts. These operations, along with the cleanup of OCI deal accounting, are expected to contribute to a long-awaited re-rating of the stock, including the potential resumption of share buybacks.
Additionally, Jackson’s analysis includes a slightly adjusted EBITDA forecast for the fourth quarter, considering seasonal production variations and management’s sales guidance. Looking ahead to 2026, he anticipates an increase in EBITDA, driven by stable methanol prices, strategic gas hedging, and continued production efficiency. These factors, combined with Methanex’s comfortable position regarding gas needs and plans for share buybacks, underpin Jackson’s optimistic view and Buy recommendation.
In another report released today, J.P. Morgan also upgraded the stock to a Buy with a $38.00 price target.
MEOH’s price has also changed slightly for the past six months – from $31.290 to $33.880, which is a 8.28% increase.