Analyst Michael Sison from Wells Fargo maintained a Buy rating on Air Products and Chemicals (APD – Research Report) and keeping the price target at $365.00.
Michael Sison has given his Buy rating due to a combination of factors that reflect Air Products and Chemicals’ strategic decisions to enhance its project portfolio. The company announced its intention to exit three U.S.-based projects, which include World Energy, Massena, and a carbon monoxide project in Texas. This move is seen as a necessary adjustment to focus on more lucrative opportunities, especially following the appointment of a new CEO and Board. By excluding the $3.1 billion charge from adjusted EPS, APD aims to streamline its operations and improve its financial outlook.
Furthermore, the company’s commitment to advancing its major projects, such as the NEOM and Louisiana Clean Energy initiatives, underscores its focus on long-term growth. The NEOM project is nearing significant completion, with green ammonia production anticipated by the end of 2026, while the Louisiana project is set for a 2028 startup. These projects are expected to bolster APD’s position in the clean energy market, contributing to the positive outlook that supports the Buy rating.
According to TipRanks, Sison is a 3-star analyst with an average return of 1.0% and a 44.83% success rate. Sison covers the Basic Materials sector, focusing on stocks such as Air Products and Chemicals, Celanese, and LyondellBasell.
In another report released today, Barclays also maintained a Buy rating on the stock with a $365.00 price target.