Raymond James has revised its price target for Methanex Corporation (MEOH, Financial), reducing it from $62 to $40, while maintaining an Outperform rating for the stock. This adjustment comes as the firm anticipates a challenging macroeconomic environment, alongside decreasing energy prices, and a decline in global methanol prices following a seasonally robust winter period.
According to the firm, methanol prices have fallen by 22% so far this year. This decline is attributed to the resumption of capacity previously idled during the winter and rising global economic uncertainties. Despite these challenges, Raymond James notes that currently, Methanex shares have reached significant value thresholds, which could potentially indicate an opportune moment for investors to consider entry.
