Citi cuts Air Products target, opens ‘positive catalyst watch’

Citi lowered the firm’s price target on Air Products (APD) to $345 from $373 and keeps a Buy rating on the shares. The firm also added a “90-day positive catalyst watch” on the shares. Citi sees potential upside from additional commentary on the Louisiana blue hydrogen project and NEOM, in addition to potential cost cutting actions and higher pricing to support the bottom line. The shares will respond favorable on improved clarity around projects and continued focus on pricing, especially in areas with higher power costs, like Europe, the analyst tells investors in a research note. However, Citi trimmed estimates in the industrial gases group to reflect weaker volumes from industrial uncertainty partially offset by less negative currency and better pricing.