Steve Byrne, an analyst from Bank of America Securities, reiterated the Hold rating on Air Products and Chemicals (APD – Research Report). The associated price target is $264.00.
Steve Byrne has given his Hold rating due to a combination of factors affecting Air Products and Chemicals’s performance and outlook. The company experienced a miss in their fiscal first quarter earnings for the first time in over two years, which Byrne attributes to a slowdown in China and decreased helium activity linked to a weaker electronics market. Additional challenges included inflation and project-related costs. Despite these setbacks, Byrne notes that the company’s operating profit in Europe has seen gains, even with slight negative pricing impacts.
Looking forward, Byrne anticipates that several elements will contribute to a recovery in the second half of the fiscal year. These include the full capacity ramp-up of the Uzbekistan project, growth in LNG equipment sales, and more favorable pricing comparisons in the Americas and Europe. However, he has adjusted the full-year earnings per share forecast downward and reduced the price objective, based on a blended valuation approach that considers a discounted cash flow analysis and a slightly lower price-to-earnings multiple. Long-term, Byrne sees clean hydrogen as a key growth driver for Air Products, with substantial capital expenditures allocated to large clean energy projects, although he expresses concern over potential delays in the green hydrogen supply chain.
Byrne covers the Basic Materials sector, focusing on stocks such as FMC, Dow Inc, and Corteva. According to TipRanks, Byrne has an average return of -1.9% and a 43.48% success rate on recommended stocks.
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Air Products and Chemicals (APD) Company Description:
Pennsylvania-based Air Products & Chemicals, Inc., which was founded in 1960, provides atmospheric gases, process and specialty gases. It also provides equipment for the production or processing of gases comprising air separation units and non-cryogenic generators for customers in various industries. It also manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage.
Read More on APD:
- Air Products and Chemicals (NYSE:APD) Tanks 10% on Q1 Miss
- Air Products sees Q2 adjusted EPS $2.60-$2.75, consensus $3.16
- Air Products sees FY24 adjusted EPS $12.20-$12.50, consensus $12.97
- Air Products reports Q1 adjusted EPS $2.82, consensus $3.00
- Air Products Reports Fiscal 2024 First Quarter GAAP EPS of $2.73 and Adjusted EPS of $2.82
