Methanex upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded Methanex (MEOH) to Outperform from Sector Perform with an unchanged price target of $50. The firm sees better visibility for the company’s following the completion of the acquisition of OCI’s methanol assets, the passage of the One Big Beautiful Bill, and progress on U.S. tariff negotiations. At the 15-year average methanol price, RBC estimates Methanex will generate an annual run-rate of $1 billion of adjusted EBITDA before cost synergies, creating a free cash flow yield of 18%. It also believes the company has the flexibility to deleverage its balance sheet.