BMO Capital Markets on Tuesday reiterated its outperform rating on the shares of Methanex (MX.TO, MEOH) and its US$60.00 price target as its updated its models ahead of the close of the methanol producer's latest acquisition.

"Marking-to-market our model for the to-be-acquired OCI assets, assuming an early Q2/2025 deal close. While the deal has been generally disliked, in our view, as investors were clamoring for a post-G3 capex-to-buybacks transition, we believe the deal will prove attractive over time, including from a FCF perspective (~$9/sh in 2026E pro forma). This assumes MEOH can run the acquired assets at better-than-historical operating rates and methanol prices hold ~$350/t long-run realized averages (also about spot levels). Our maintained US$60 target price is ~6.5x 2026E pro forma EV/EBITDA," analyst Joel Jackson wrote.

(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: 53.76, Change: +1.28, Percent Change: +2.44