UPDATE: BMO Capital Markets Downgrades Methanex Corporation to Market Perform, Lowers PT as Strong Share Price Appreciation Leaves Less Cushion to Absorb Risk

In a report published Monday, BMO Capital Markets analyst Alexandra Syrnyk downgraded the rating on

from Outperform to Market Perform, and lowered the price target from $70.00 to $67.50. In the report, BMO Capital Markets noted, “We are updating estimates to incorporate higher December North American and Asia posted contract prices. We have also updated our mid-term (+three–four year) global methanol supply/demand balance to incorporate potential supply-side developments…The ~6% increase in December contract prices lifted our Q4/13 and 2014 EBITDA estimates by ~5% and ~1%, respectively. However, since providing a methanol market update in our November 20 comment, two supply-side developments (the OCI build announcement and the Iran nuclear agreement) have emerged that start to soften our previous expectations of continued tight methanol market conditions in the 2017/18 time frame.” Methanex Corporation closed on Friday at $61.40.