TSE:MX

Methanex Corp (MX.TO)

74.43
-1.87 (2.45%)
as of Jul 16, 2026, 7:40:20 pm Market Open.
101 watching
0
Investor Insights
star iconJul 16, 2026, 12:00 am

This summary was created by AI, based on 4 opinions in the last 12 months.

Methanex Corp (MX-T) has garnered mixed opinions among experts regarding its current standing and future potential. One expert reported a successful trading experience, having bought shares around $50 and selling near $75, while noting a cautious approach towards new investments at the present time. Another review highlighted the strength in the company's RSI amidst positive trends in fertilizers and chemicals due to geopolitical tensions, suggesting continued momentum with an optimistic price target of $89.31. A third expert pointed to a recent recovery from lower levels, indicating potential for further upside if it breaks through old resistance. However, some caution is advised as fundamentals are showing a 32% year-over-year decrease in EPS, combined with expected revenue declines. Despite these challenges, the stock is noted for its decent dividend yield and potential for a turnaround with the upcoming earnings report on July 30, which may indicate an upside surprise.

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Consensus
Cautious
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Valuation
Fair Value
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TOP PICK
It is a cyclical stock. It is a best of breed. Their advantage is low cost leadership. Some of their plants are idle right now. It is likely a double coming out of this. (Analysts’ price target is $28.54)
WEAK BUY
It is taking a lot more risk but could end up being a great trade. It is a cyclical company. If you have a very favourable view of the economy you can own it.
BUY
We have seen some constructive signs coming out of it recently. It is a company hit by the demand-shock like so many during COVID. He is looking at putting it back into his portfolio.
BUY ON WEAKNESS
A deep cyclical that hit its lower target range. His is watching and would love to buy on a dip towards $16.
WAIT
It has benefited from the fall in Natural Gas prices, which is its feed stock, but it suffered with the drop off in demand for gasoline. He would say it is similar in seasonality to WTI. If oil gets strength, this one should do well, consider late in the summer time. We aren't there yet.
HOLD

Why correlated to oil? He owns it and was disappointed they decided to cut the dividend by 90% -- the first cut ever. It had been yielding 11% up to that, so the market was expecting some cut. It correlates to natural  gas an input, but its output is related to gasoline as methanol is an additive to the fuel. He thinks going forward, although this is a cyclical business they should be able to weather the recession as it has in the past. He expects juicy capital appreciation as it trades 0.8 times book value. They have idled high cost facilities. It produces 13% of the world's methanol. Not a dividend payer anymore, but good upside on capital.

BUY

He just bought it, because he wanted more value and cyclical names. It's cheap. They're the world's biggest producer of methanol wich is used in plastics. They're expanding capacity in a U.S. plant and should get financing for that plant. They buyback a lot of shares. Now is a pullback opportunity.

WEAK BUY
He has been taking advantage in the markets of selling bond proxies. This would be one of the examples. It is a very cyclical commodity. He thinks the commodity will firm up. They are a big purchaser of their own stock. He thinks you can buy it comfortably and wait for the market to firm up.
COMMENT
Long-term downtrend. Support at $40, but it's testing that support now. If it falls lower than that, reduce or sell altogether.
DON'T BUY
It has a big mountain of existing shares held (the chart peaked then fell a lot), so it faces a huge challenge to rise. Stay away.
SELL ON STRENGTH
It came down from a $60 head and shoulders, breaking it. Now, it's consolidating. $60 was support and is now resistance. So, sell at $60.
TOP PICK
Largest producer of methanol in the world, with 14% share of global market. Lots of free cash flow. Dividend has grown 9% annually over last 10 years, plus retired 17% of shares. Discounted valuation, so a good entry point. Yield is 3.8%. (Analysts’ price target is $53.88)
BUY
Seasonality is late-January to early-May. This has broken its downtrend line, so the outlook looks good.
DON'T BUY

They produce a product that is loosely a substitute for gasoline. The issue is that they produce in foreign jurisdictions. He does not like to worry about the different demand characteristics compared to gasoline. He would not bother with it at these levels although it could be a trading vehicle. He prefers CNQ-T.

DON'T BUY
The issue is that it is a cyclical. Fundamentals have been going down. Model price is $40.74, or a 13% downside.
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