RBC downgrades Methanex to Sector Perform on post-war rally

RBC Capital downgraded Methanex (MEOH) to Sector Perform from Outperform with a price target of $65, up from $55. The firm says the shares are “increasingly becoming linked” to the ongoing Iran war. After rallying 49% year-to-date and 17% since the start of the war, the shares reflect the improving underlying fundamentals of the company and some methanol pricing upside from the conflict, the analyst tells investors in a research note. RBC cites valuation for the downgrade, saying the elevated near-term methanol prices could normalize by year-end.