Recent Investment Analysts’ Ratings Updates for Air Products & Chemicals (APD)
Air Products & Chemicals (NYSE: APD) received a number of price target changes and ratings updates during the last week:
- Air Products & Chemicals was upgraded by analysts at Atlantic Securities from a “neutral” rating to an “overweight” rating.
- Air Products & Chemicals was downgraded by analysts at Credit Suisse from an “outperform” rating to a “neutral” rating.
- Air Products & Chemicals was downgraded by analysts at Bank of America from a “buy” rating to a “neutral” rating. They now have a $86.00 price target on the stock. They wrote, “We view APD as a leader in industrial gases, with exposure to high-growth markets, including Asia, refinery hydrogen, and electronics. Take-or-pay onsite gas contracts, and 3-5 year merchant gas contracts provide a cushion against downturns. We are encouraged by growth in the project backlog, but recent volume trends have been disappointing, particularly in merchant gases, and we consider valuation fair.”
- Air Products & Chemicals had its price target lowered by analysts at Jefferies Group from $107.00 to $94.00. They now have a “buy” rating on the stock. They wrote, “Air Products shares will likely remain range-bound into the spring until it becomes clearer how much of the soft 2013E outlook relates to company-specific execution issues rather than end-market demand or pension accounting issues that will affect most companies in the sector. We are lowering 2013E $0.55 to $5.70 to reflect softer near-term volumes, higher pension costs, taxes, option creep and the PUI exit.”
- Air Products & Chemicals had its “buy” rating reaffirmed by analysts at Deutsche Bank. They now have a $95.00 price target on the stock, down previously from $100.00. They wrote, “FY13 guidance disappointing but backlog intact. 3 P/E discount to PX. Buy. Air Products shares fell 6% following disappointing FY13 guidance (7% below consensus) and the company’s acknowledgement that it would not meet its 2015 financial goals. While Air Products forecast of a continuation of difficult macro conditions in FY13 (weakness in Europe, electronics and Asia) was, in our view, largely, reflecting in consensus and priced into the shares, the company’s acknowledgement that customers are delaying new project start-ups was concerning as Air Products record $3B backlog is the heart of its investment story. With project delays likely transitory and valuation compelling at 13.6x C13E EPS, and a 3x P/E discount to Praxair, Buy.”
- Air Products & Chemicals had its price target lowered by analysts at Citigroup from $88.00 to $83.00. They now have a “neutral” rating on the stock. They wrote, “We rate the shares of Air Products & Chemicals Inc. (APD) Neutral. We like the industrial gas business model given its defensive growth characteristics through long-term take-or-pay contracts. However, the merchant business has struggled to generate consistent margin improvement, and volume growth has lagged. We believe the company was less focused on this business during its pursuit of Airgas, and was forced to hire new salespeople after the bid was unsuccessful. However, incremental sales will take time to materialize, adding risk to longer-term targets. Plus, European exposure presents an additional challenge to top-line growth.”
- Air Products & Chemicals had its price target lowered by analysts at JPMorgan Chase from $84.00 to $82.00. They now have a “neutral” rating on the stock. They wrote, “We rate APD shares Neutral. Air Products trades at a P/E of 13.9x our 2013 estimate versus peer group average of 15.8x and 16.9x for Praxair, its closest comparable. Based on an EV/EBITDA valuation, APD trades at 8.4x for 2013 versus peer group average of 8.9x and 10.2x for Praxair. APD has the lowest level of free cash flow generation of the companies in our coverage for F2013: it may even go negative next year. APD is capable of a faster rate of EPS growth and share price performance in a stronger electronics environment. We would be patient and seek a more constructive entry point into the shares.”
- Air Products & Chemicals had its “hold” rating reaffirmed by analysts at Societe Generale. They now have a $86.00 price target on the stock.
- Air Products & Chemicals was downgraded by analysts at KeyBanc from a “buy” rating to a “hold” rating. They wrote, “We are downgrading Air Products and Chemicals Inc. (APD-NYSE) to a HOLD rating from BUY rating despite its recent and sharp sell off since it reported fiscal 4Q12 results on October 19th. Underpinning our change in sentiment to a more neutral stance is another sharp earnings reduction this time to FY13, down earnings growth in 1H13, which does not bode well for multiple expansion near term, uncertainty on APD’s long-term earnings potential and simply a lack of good catalysts to reverse the negative trends. APD is trading at the low end of its historical trading range on both an EV/EBITDA and P/E basis, suggesting limited downside at current levels, supporting our neutral stance.”
- Air Products & Chemicals was downgraded by analysts at KeyBanc Capital Mkts from a “buy” rating to a “hold” rating.
- Air Products & Chemicals was downgraded by analysts at – KeyBanc Capital Markets to a “hold” rating.
Shares of Air Products & Chemicals, Inc. opened at 77.09 on Thursday. Air Products & Chemicals, Inc. has a 52 week low of $76.11 and a 52 week high of $92.79. The company has a market cap of $16.335 billion and a P/E ratio of 14.20.
Air Products and Chemicals, Inc. has a portfolio of products, services, and solutions that include atmospheric gases, process and specialty gases, performance materials, equipment, and services.