09:28 AM EDT, 08/01/2025 (MT Newswires) -- Methanex ( MEOH ) had its stock rating upgraded to outperform from sector perform while its US$50 price target remained unchanged by RBC Capital Markets, according to a Friday note.

RBC said it upgraded the shares as there is now better visibility after Methanex ( MEOH ) closed the acquisition of OCI's methanol assets.

RBC also cited the passage of the OBBB in the U.S. and progress on U.S. tariff negotiations.

At the 15-year average methanol price of US$350 per metric ton, RBC estimates that the company will generate an annual run-rate of US$1 billion of adjusted EBITDA, driving a free cash flow yield of about 18%.

RBC expects the company to have the financial flexibility to deleverage below 3.0x Debt/EBITDA and initiate share buybacks in the second half of 2026.

Methanex ( MEOH ) traded at US$33.45 per share at last look in Nasdaq pre-market trading.