10 Cheap Canadian Stocks to Buy According to Analysts

2. Methanex Corporation (NASDAQ:MEOH)

Forward P/E Ratio: 9.45

Earnings Growth This Year: 25.26%

Analyst Upside Potential: 43.05%

Methanex Corporation (NASDAQ:MEOH) produces and supplies methanol around the world, including North America, Asia Pacific, Europe, and South America. It operates production facilities in several countries, including Canada, Chile, Egypt, New Zealand, Trinidad and Tobago, and the United States. Methanex Corporation (NASDAQ:MEOH) is one of the largest producers and suppliers of methanol globally, and its operations are supported by a significant logistics network.

On February 18, the company received a Buy rating on the stock from analyst Ben Isaacson of Scotiabank, with a price target of $66. During the fiscal fourth quarter of 2024, the company experienced higher adjusted EBITDA compared to Q3 2024, driven by higher average realized prices and increased produced sales. It generated an adjusted EBITDA of $224 million. Management noted that the global methanol demand increased by approximately 3 million tons in 2024 compared to 2023 and it expects similar demand growth in 2025. In addition, Methanex Corporation (NASDAQ:MEOH) is working on acquiring OCI and is managing its finances to pay down debt and potentially reward shareholders. Lastly, the cheap valuation makes it one of the cheap Canadian stocks to buy according to analysts.

Polaris Global Equity Strategy stated the following regarding Methanex Corporation (NASDAQ:MEOH) in its Q3 2024 investor letter:

“Barbell returns defined the materials sector, with gains from Linde PLC, Yara International, Smurfit Kappa (now Smurfit Westrock), Antofagasta PLC and Mondi PLC offset by two Canadian companies, Methanex Corporation (NASDAQ:MEOH) and Lundin Mining. Methanex shares fell after the company agreed to acquire the methanol business of OCI Global for a little more than $2 billion. Methanex is slated to get OCI’s interest in two methanol facilities in Texas as well as a low-carbon methanol production business and idled facility in the Netherlands. Following the news, Barclays downgraded the stock, citing concerns about operating reliability, increased leverage and investor rotation.”