UBS on Thursday reiterated its buy rating on the shares of Methanex (MX.TO, MEOH) while lowering its price target to US$51.00 from US$53.00 following first-quarter results from the methanol producer.

"MEOH 1Q EBITDA was slightly below expectations, on both lower sales volumes and pricing. The stock has already been negatively hit on declines in China methanol prices and unplanned G3 downtime. Good news is that G3 repairs are on track and MEOH expects production to start shortly, but this has a negative impact in 2Q. This outage was known, but declines in methanol prices over April, lead to a lower realized price for the quarter. Our updated 2Q EBITDA is now $148M (was $153M vs stale $187M cons). We think expectations were closer to $150M already, so we believe this is only slightly lower than expectations," the investment bank noted.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 42.89, Change: -0.31, Percent Change: -0.72