JPMorgan Initiates Coverage on Methanex (MEOH) Stock

Methanex Corporation (NASDAQ:MEOH) is one of the 7 best undervalued stocks to buy now. On June 10, JPMorgan began coverage on the company’s stock with a “Neutral” rating and a price objective of $33.00.  The company happens to be a leading global producer and distributor of methanol, which is a critical chemical component utilised in construction materials, plastics, and fuels.

An aerial view of a petrochemical manufacturing plant, its intricate network of pipes and vats reflecting the industry’s innovation and complexity.

The firm’s analysts believe that Methanex Corporation (NASDAQ:MEOH)’s financial leverage is expected to increase as a result of prospective acquisitions of methanol and ammonia assets from OCI in the US and Europe. Furthermore, the firm opines that the broader industrial landscape remains sluggish, with no significant expected upswings in methanol demand volume. Also, over the near term, there can be some softening of prices.

At the beginning of Q2 2025, Methanex Corporation (NASDAQ:MEOH) has seen moderation in methanol pricing with higher supply from the restart of numerous large-scale methanol plants and a decline in global energy pricing amidst higher uncertainty and concerns related to tariffs and their effect on global activity. Methanex Corporation (NASDAQ:MEOH) expects to complete the acquisition of OCI Global’s international methanol business in Q2 2025 and to draw on the $650 million term loan A, which will be available on closing.

Methanex Corporation (NASDAQ:MEOH) is a Vancouver-based, publicly traded company that is the world’s largest producer and supplier of methanol.

While we acknowledge the potential of MEOH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than MEOH and that has 100x upside potential, check out our report about this cheapest AI stock.

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