Wall Street Zen Downgrades Methanex (NASDAQ:MEOH) to Buy

Key Points

• Wall Street Zen downgraded Methanex from “strong buy” to “buy,” while broader analyst coverage remains positive with a consensus “moderate buy” rating and an average price target of $68.56.
• Methanex shares opened at $56.12, up 3.5%, but the company’s latest quarterly results fell slightly short of expectations, reporting $3.87 in EPS versus a $4.00 consensus estimate and $1.40 billion in revenue versus $1.43 billion expected.
• Institutional investors own 73.49% of Methanex’s stock, with major firms including Vanguard and Wellington Management increasing their stakes during the fourth quarter.

Methanex (NASDAQ:MEOH - Get Free Report) TSE: MX was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report issued on Saturday.

A number of other research analysts also recently weighed in on MEOH. Royal Bank Of Canada lowered their price target on Methanex from $70.00 to $65.00 and set a "sector perform" rating on the stock in a report on Wednesday, July 1st. Canadian Imperial Bank of Commerce upgraded shares of Methanex from a "neutral" rating to a "sector outperform" rating and increased their price target for the stock from $69.00 to $71.00 in a research note on Monday, July 20th. JPMorgan Chase & Co. lowered Methanex from an "overweight" rating to a "neutral" rating and increased their price objective for the company from $56.00 to $65.00 in a report on Friday, May 1st. National Bank Financial set a $70.00 target price on shares of Methanex and gave the stock an "outperform" rating in a report on Monday, July 13th. Finally, Scotiabank lifted their price target on Methanex from $70.00 to $80.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 5th. Six investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Methanex has a consensus rating of "Moderate Buy" and an average price target of $68.56.

Methanex Trading Up 3.5%

Methanex stock opened at $56.12 on Friday. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.35 and a current ratio of 2.07. The firm has a market cap of $4.34 billion, a price-to-earnings ratio of 54.49 and a beta of 0.58. The firm's 50 day moving average price is $52.85 and its two-hundred day moving average price is $54.96. Methanex has a 1 year low of $32.00 and a 1 year high of $66.75.

Methanex (NASDAQ:MEOH - Get Free Report) TSE: MX last announced its earnings results on Tuesday, July 28th. The specialty chemicals company reported $3.87 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.00 by ($0.13). The company had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.43 billion. Methanex had a return on equity of 11.35% and a net margin of 2.07%.The firm's revenue for the quarter was up 75.0% on a year-over-year basis. During the same period last year, the firm earned $0.97 earnings per share. On average, research analysts predict that Methanex will post 8.62 EPS for the current fiscal year.

Institutional Investors Weigh In On Methanex

Institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its stake in shares of Methanex by 14.0% in the 4th quarter. Vanguard Group Inc. now owns 2,746,051 shares of the specialty chemicals company's stock valued at $108,917,000 after buying an additional 336,316 shares in the last quarter. Wellington Management Group LLP lifted its holdings in shares of Methanex by 629.5% during the 4th quarter. Wellington Management Group LLP now owns 2,316,270 shares of the specialty chemicals company's stock worth $92,000,000 after acquiring an additional 1,998,763 shares during the period. Dixon Mitchell Investment Counsel Inc. boosted its position in shares of Methanex by 0.4% during the 4th quarter. Dixon Mitchell Investment Counsel Inc. now owns 2,048,214 shares of the specialty chemicals company's stock valued at $81,363,000 after acquiring an additional 7,707 shares in the last quarter. FIL Ltd boosted its position in shares of Methanex by 40.3% during the 4th quarter. FIL Ltd now owns 1,803,108 shares of the specialty chemicals company's stock valued at $71,520,000 after acquiring an additional 518,173 shares in the last quarter. Finally, Bank of Montreal Can increased its stake in Methanex by 10.3% in the fourth quarter. Bank of Montreal Can now owns 1,313,615 shares of the specialty chemicals company's stock valued at $52,104,000 after acquiring an additional 123,078 shares during the period. Institutional investors and hedge funds own 73.49% of the company's stock.

Methanex Company Profile

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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