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Methanex upgraded at Raymond James as methanol price discount fades

|About: Methanex Corporation (MEOH)|By: , SA News Editor

Methanex (MEOH +4.7%) is upgraded to Outperform from Market Perform with a $40 price target, raised from $32, at Raymond James, which expects current North American methanol price dislocations to fade in coming months.

The firm expects the price discount to China to fall in the coming months, followed by a broader market increase in H2 2016.

With MEOH poised to capitalize on the pricing recovery, the firm sees potential upside to both earnings and free cash flow as oil prices recover.

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