Methanex upgraded to Overweight from Neutral at JPMorgan

JPMorgan upgraded Methanex (MEOH) to Overweight from Neutral with a price target of $38, up from $33. The stock’s valuation can move higher given Methanex’s stronger growth prospects and high free cash flow yield, the analyst tells investors in a research note. The firm says that while methanol values are cyclical and sensitive to global oil prices, Methanex is the “most inexpensive of the petrochemical commodities.” The company is differentiated by its free cash flow generation and by the methanol industry not aggressively adding capacity over the coming several years, adds JPMorgan.