10:29 AM EDT, 04/03/2024 (MT Newswires) -- RBC Capital Markets said Tuesday that it updated its model for Methanex Corp. ( MEOH ) to reflect the company's modestly higher non-discounted reference prices and CMA's most recent price forecast.

The adjusted EBITDA forecast for Methanex ( MEOH ) was raised to US$579 million from US$559 million in 2024 and to US$608 million from US$605 million in 2025.

RBC said it sees potential downside risk for Methanex ( MEOH ) if a global economic slowdown materializes in 2024, citing the company's high sensitivity to methanol prices.

RBC added that it sees near-term upside for Methanex ( MEOH ) in the event of supply disruptions in oil, gas and methanol sectors due to geopolitical events.

RBC gave Methanex ( MEOH ) a sector perform rating with a US$45.00 price target. RBC reiterated its Sector Perform rating as it sees limited catalysts that could move the shares higher as the company focuses on repairing/restarting G3 and building cash on its balance sheet ahead of a debt maturity in December 2024.

Price: 64.85, Change: +2.41, Percent Change: +3.86