NEW YORK (TheStreet) -- BMO Capital upgraded Methanex (MEOH) - Get Free Report to "outperform" from "neutral" and increased its price target to $73. The firm noted favorable mid-term prospects for the ethanol supply/demand and price dynamic, particularly in China.
The stock closed at $61.46 on Monday.
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Separately, TheStreet Ratings team rates METHANEX CORP as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate METHANEX CORP (MEOH) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 48.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, MEOH has a quick ratio of 1.61, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 138.09% and other important driving factors, this stock has surged by 40.14% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MEOH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- METHANEX CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, METHANEX CORP turned its bottom line around by earning $3.41 versus -$0.79 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 140.8% when compared to the same quarter one year prior, rising from $60.27 million to $145.10 million.
- You can view the full analysis from the report here: MEOH Ratings Report
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.