Raymond James analyst Steve Hansen has maintained their bullish stance on MEOH stock, giving a Buy rating on November 17.
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Steve Hansen has given his Buy rating due to a combination of factors that highlight Methanex’s strategic positioning and future potential. The company’s management has a positive outlook on methanol demand, anticipating steady growth driven by core applications in China, which could lead to a need for new production facilities. This demand growth is expected to outpace supply, as there is a projected scarcity of new capacity, which could result in a tighter supply-demand balance over the coming years.
Furthermore, Methanex has successfully transformed its production portfolio over the past decade to become more efficient and predictable, which is expected to yield significant free cash flow benefits. The company’s strategic focus on deleveraging and shareholder returns, including plans for debt repayment and potential share buybacks, further supports the Buy rating. These elements combined suggest that Methanex is well-positioned to leverage its improved platform and capitalize on market conditions, making it an attractive investment opportunity.
Hansen covers the Industrials sector, focusing on stocks such as RB Global, Exchange Income, and Cargojet. According to TipRanks, Hansen has an average return of 2.1% and a 50.31% success rate on recommended stocks.
In another report released on November 17, CIBC also maintained a Buy rating on the stock with a $47.00 price target.