UPDATE: Monness Crespi Hardt Initiates Methanex at Buy on Good Market Position

In a report published Monday, Monness Crespi Hardt analyst Chris Shaw initiated coverage on Methanex (NASDAQ: MEOH) with a Buy rating and $52.00 price target.

In the report, Monness Crespi Hardt noted, “We are initiating coverage of Methanex with a Buy rating and a $52 target. Methanex is very well positioned as the global leader in methanol, a chemical we believe will continue to see strong gains in demand over the next few years. Methanex is uniquely positioned to take advantage of this growth with its global footprint, as well as its ability to add significant brownfield capacity at costs lower than new greenfield projects. Given the limited outlook for other industry supply additions, we believe that pricing for methanol can continue to climb and methanol could become the next “resurrected” commodity chemical to see significant pricing gains over the next few years. As a result, we see above consensus earnings translating to a $52 target and therefore we place a Buy rating on MEOH shares.”

Methanex closed on Friday at $42.66.