Methanex Corporation (NASDAQ:MEOH) shares were down more than 3% today after RBC Capital downgraded the company to Sector Perform from Outperform and lowered its price target to $45 from $50.
The analysts see rising recessionary uncertainties and the potential for lower methanol prices in 2023. Although elevated natural gas prices could support methanol prices, analysts think an economic slowdown will lead to lower overall methanol prices.
CMA (Chemical Market Analytics) materially reduced its methanol price forecast, reflecting lower pricing through 2023, primarily driven by a weaker Asian market outlook and its impact on global benchmark pricing.