UPDATE: Raymond James Downgrades Methanex to Market Perform on Retreating Oil Prices
Raymond James lowers its rating on Methanex (NASDAQ: MEOH) from Outperform to Market Perform and reduces its price target from $42 to $35.
Raymond James comments, "Despite our positive long-term view toward global methanol markets, we are increasingly mindful of the potential impact that retreating oil prices will have on key industry indicators (i.e. Chinese gasoline/naptha prices), and more importantly, the company's short-term trading valuation. In this context, we find it difficult to ignore the stiff headwinds recently put forth by our US Energy Team that call for $65/bbl oil in 2013. Signals suggesting the Chinese and global economies are slowing also weighed into our decision."
MEOH closed at $27.12 on Monday.
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