UBS Group Forecasts Strong Price Appreciation for Methanex (NASDAQ:MEOH) Stock

Key Points

• UBS Group raised its Methanex price target to $70 (from $60) and maintained a "buy" rating, implying roughly a 20.8% upside from the prior close.
• Methanex reported Q results with EPS of ($0.14), missing estimates by $0.95, and the stock fell about 5.8% to $57.94 on the news.
• Analysts' consensus remains a "Moderate Buy" with an average price target of $55.50, and institutional investors own roughly 73.5% of the shares.

Methanex (NASDAQ:MEOH - Get Free Report) TSE: MX had its price target lifted by UBS Group from $60.00 to $70.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the specialty chemicals company's stock. UBS Group's target price indicates a potential upside of 20.81% from the stock's previous close.

Several other research firms have also weighed in on MEOH. Royal Bank Of Canada lowered Methanex from an "outperform" rating to a "sector perform" rating and raised their target price for the company from $55.00 to $65.00 in a report on Thursday, April 2nd. Canadian Imperial Bank of Commerce raised their price target on Methanex from $52.00 to $59.00 and gave the company a "neutral" rating in a research report on Tuesday, March 17th. BMO Capital Markets raised their price target on Methanex from $65.00 to $70.00 and gave the company an "outperform" rating in a research report on Wednesday, March 18th. Raymond James Financial raised their price target on Methanex from $45.00 to $50.00 and gave the company a "market perform" rating in a research report on Tuesday, March 10th. Finally, Jefferies Financial Group raised their price target on Methanex from $50.00 to $60.00 and gave the company a "buy" rating in a research report on Wednesday, March 11th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $55.50.

Methanex Stock Down 5.8%

NASDAQ MEOH traded down $3.57 during trading on Thursday, hitting $57.94. 2,267,082 shares of the company traded hands, compared to its average volume of 1,236,924. Methanex has a 12 month low of $25.95 and a 12 month high of $66.75. The business has a fifty day simple moving average of $53.05 and a 200 day simple moving average of $44.06. The company has a current ratio of 2.06, a quick ratio of 1.37 and a debt-to-equity ratio of 0.99. The company has a market capitalization of $4.48 billion, a P/E ratio of 51.27 and a beta of 0.56.

Methanex (NASDAQ:MEOH - Get Free Report) TSE: MX last posted its earnings results on Thursday, March 5th. The specialty chemicals company reported ($0.14) earnings per share for the quarter, missing the consensus estimate of $0.81 by ($0.95). Methanex had a net margin of 2.21% and a return on equity of 5.35%. The company had revenue of $968.81 million for the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter last year, the business earned $1.24 earnings per share. Methanex's quarterly revenue was up 2.1% on a year-over-year basis. As a group, sell-side analysts predict that Methanex will post 4.32 EPS for the current year.

Institutional Investors Weigh In On Methanex

Institutional investors have recently added to or reduced their stakes in the company. JPMorgan Chase & Co. grew its position in Methanex by 546.7% during the third quarter. JPMorgan Chase & Co. now owns 269,374 shares of the specialty chemicals company's stock worth $10,710,000 after buying an additional 227,723 shares in the last quarter. Semanteon Capital Management LP acquired a new stake in Methanex during the third quarter worth about $419,000. TD Asset Management Inc grew its position in Methanex by 87.1% during the third quarter. TD Asset Management Inc now owns 689,461 shares of the specialty chemicals company's stock worth $27,417,000 after buying an additional 320,964 shares in the last quarter. Alberta Investment Management Corp grew its position in Methanex by 29.5% during the third quarter. Alberta Investment Management Corp now owns 992,000 shares of the specialty chemicals company's stock worth $39,442,000 after buying an additional 226,000 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. grew its position in Methanex by 249.8% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,432,483 shares of the specialty chemicals company's stock worth $56,939,000 after buying an additional 1,022,987 shares in the last quarter. 73.49% of the stock is owned by institutional investors and hedge funds.

About Methanex

Methanex Corporation is a Vancouver, Canada–based company and one of the world's largest producers and suppliers of methanol. The company manufactures methanol, a key feedstock for a wide range of chemical products and industrial applications. Methanex markets its product to customers in energy, plastics, paints and coatings, and various chemical sectors, positioning the company as a critical link in the global supply chain for basic chemicals.

The company's core product, methanol, serves as a building block for downstream chemicals such as formaldehyde, acetic acid and methyl tertiary butyl ether (MTBE).

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