Methanex Stock Holds Ground As UBS Reiterates ‘Buy’ Rating, Hikes Price Target: Retail’s Not Buying It Yet

While UBS expects methanol prices could soften as more supply is expected to enter the market, it sees prices firming up later in the year.

Shares of Methanex Corp. (MEOH) held their ground in morning trade on Friday after analysts at UBS reiterated their ‘Buy’ rating on the stock and bumped the price target.

According to TheFly, UBS analysts believe the Methanex stock is undervalued. The brokerage hiked its price target for the Methanex stock to $66 from $63, implying an upside of over 29% from current levels.

The Canada-based Methanex is one of the largest suppliers and marketers of methanol, with a presence across North and South America, Europe, and Asia Pacific.

Methanol, which is usually used to power internal combustion engines (ICE) on its own or in combination with gasoline, is expected to see a softening in its prices from existing levels. 

UBS notes that methanol prices could see a relief as more supply is expected to enter the market later this year.

Despite this, the brokerage observes that the market could firm up later in the year.

On Stocktwits, retail sentiment around the Methanex stock remained in the ‘neutral’ (52/100) territory, while message volume was at a ‘low’ level at the time of writing.

Methanex’s share price has been on an uptrend over the past few months, gaining nearly 26% in the last six months. However, its one-year returns have been less stellar, with gains of 14%.

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