Methanex Analyst Says $2B Acquisition Will Be An Overhang On Shares
Portfolio Pulse from Priya Nigam
Methanex Corp (NASDAQ:MEOH) is facing a downtrend after announcing a $2.05 billion acquisition of OCI Global's methanol business. Barclays analyst Mike Leithead downgraded Methanex to Equal-Weight, reducing the price target from $56 to $44, citing transaction risks and increased leverage as concerns.
September 10, 2024 | 3:48 pm
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Methanex's $2.05 billion acquisition of OCI's methanol business has led to a downgrade by Barclays, with concerns over transaction risks and increased leverage. The price target was cut from $56 to $44, and shares have declined by 5%.
The acquisition introduces transaction risks and increased leverage, leading to a downgrade by Barclays. The price target was reduced, and shares have already declined by 5%, indicating a negative short-term impact.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100