Q: What is driving the recent strength in MX share price? Do you see this momentum continuing and how far do you think it can realistically continue? What would end the upward trajectory? At what point would you consider it fully valued and would you exit your position?
Thanks for the great service.
Scott
Thanks for the great service.
Scott
5i Research Answer:
The Middle East accounts for about 20% of global methanol production, so the stock has gotten a war boost as investors see rising prices ahead. MX has also received some broker upgrades this month. Its move may be sustainable while the war is ongoing, but that is uncertain. A level is hard to pick as contract prices could still move up as customers lock in supply even if they think the war will wind down. We might target an $80 price to do some trimming after this year's big move.