Methanex initiated with a Neutral at JPMorgan

JPMorgan initiated coverage of Methanex (MEOH) with a Neutral rating and $33 price target Methanex is the global leader in the production and sale of methanol, a key building block chemical used in construction materials, plastics, and fuels, the analyst tells investors in a research note. The firm says the company’s balance sheet is likely to become more levered because of its probable purchase of OCI’s methanol and ammonia assets in the U.S. and Europe. The general industrial business environment “remains relatively weak,” and there is no likely sharp volume increases in the general level of methanol demand and perhaps some price weakness near-term, contends JPMorgan.