Story updated at 9:45 reflect market activity.

NEW YORK (TheStreet) -- Jefferies increased its price target for Methanex (MEOH - Get Report) to $86 Monday while maintaining its "buy" rating for the chemical company.

Shares of Methanex gained .01% to $71.04 in morning trading.

The firm's analysts say the price target increase is due to Methanex bumping up its numbers. The increase is also drive by better methanol pricing dynamics that could benefit the company.

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TheStreet Ratings team rates METHANEX CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate METHANEX CORP (MEOH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. 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 came in higher than the industry average of 13.6%. Since the same quarter one year prior, revenues rose by 32.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 188.59% and other important driving factors, this stock has surged by 88.55% 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 191.4% when compared to the same quarter one year prior, rising from -$139.85 million to $127.80 million.
  • Net operating cash flow has significantly increased by 64.39% to $161.76 million when compared to the same quarter last year. In addition, METHANEX CORP has also vastly surpassed the industry average cash flow growth rate of 13.08%.
  • You can view the full analysis from the report here: MEOH Ratings Report

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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.