Analyst Salvator Tiano of Bank of America Securities reiterated a Sell rating on Air Products and Chemicals, with a price target of $275.00.
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Salvator Tiano has given his Sell rating due to a combination of factors impacting Air Products and Chemicals’ performance. Despite a slight earnings beat in the third quarter, the company is navigating challenging macroeconomic conditions with limited supportive factors. The new CEO’s strategic focus on core air gas operations is promising, but the company faces hurdles with certain projects in Louisiana and NEOM that have questionable financial benefits. Additionally, there is a shortage of new large-scale projects to sustain their growth momentum.
Moreover, the company is experiencing headwinds such as a decline in helium prices, which is expected to negatively impact earnings per share in the coming years. Sales in Asia are projected to remain flat, contributing to a downward revision of earnings expectations for 2025. These challenges, coupled with a lack of significant growth drivers, lead to skepticism about the potential for a meaningful revaluation of the company’s stock, justifying the Sell rating.
According to TipRanks, Tiano is an analyst with an average return of -7.6% and a 46.15% success rate. Tiano covers the Basic Materials sector, focusing on stocks such as Celanese, Element Solutions, and PPG Industries.