Methanex downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Nelson Ng downgraded Methanex to Sector Perform from Outperform with a price target of $45, down from $50. The analyst sees too many uncertainties for the company going into a potential recession. Methanex shares are very sensitive to methanol prices, which could come under pressure in a recession, Ng tells investors in a research note. The analyst, who adds that the company has a solid balance sheet to withstand the challenges, says RBC revised down its methanol price outlook for 2023 due to weakness in Asia, recessionary pressure and lower natural gas prices.