Methanex Corp (MEOH) Stock AnalysisMEOHMethanex Corp

Methanex Corporation is a Canada-based producer and supplier of methanol globally. It serves customers in Asia Pacific, North America, Europe and South America. Its total annual operating capacity, including Methanex's interests in jointly owned plants, is over 10.6 million tons and is located in the United States, New Zealand, Trinidad and Tobago, Chile, Egypt, and Canada. In addition to the methanol produced at its sites, it purchases methanol produced by others under methanol offtake contracts and on the spot market. In the United States, its plants in Geismar, Louisiana, have the capability to serve global methanol demand. Its New Zealand production site supplies methanol primarily to customers in Asia Pacific. Its Chile production site supplies methanol to customers in South America and Asia Pacific. Its Egypt plant (Methanex interest 50%) is located on the Mediterranean Sea and primarily supplies methanol to domestic and European customers, but can also supply customers in Asia. It operates in the Basic Materials sector.

Methanex Corp is a good buy right now due to its current price of $57.67, which is below the average analyst price target of $68.75 (from UBS and CIBC). The company reported a significant Q2 profit of $197.83 million, translating to $2.45 per share, indicating strong profitability and growth potential. However, the main risk is the recent downgrade by JPMorgan, which set a lower target of $55, suggesting potential downside.

13 analysts cover MEOH: 7 rate it Buy, 5 Hold and 1 Sell. The average price target is 49.67.