Deutsche Bank Upgrades Air Products & Chemicals Inc. (APD) to Buy; Closing the Valuation Gap
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Price: $94.17 -1%
Rating Summary:
5 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
5 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade APD Now!
Deutsche Bank upgraded Air Products & Chemicals Inc. (NYSE: APD) to Buy. Raising target by $18 to $110.
Deutsche analyst says, "We are upgrading Air Products to Buy from Hold following the withdrawal of Air Products offer to acquire Airgas (NYSE: ARG). With the removal of the overhang of the Airgas bid, investors are again focusing on Air Products valuation discount versus Praxair. Historically, this discount has ranged from 1-3 P/E multiple points. Today it is 2.3 P/E multiple points. With Air Products possessing the same EPS growth profile as Praxair (13% CAGR 2011-12E), we believe Air Products’ discount versus Praxair will narrow to 1 multiple point (or less) as it delivers on our 13% CAGR EPS forecast...we are maintaining our ‘11E EPS of $5.65, up 13%, and our ‘12 EPS of $6.30, up 12%."
For more ratings news on Air Products & Chemicals Inc. click here and for the rating history of Air Products & Chemicals Inc. click here.
Shares of Air Products & Chemicals Inc. closed at $93.94 yesterday, with a 52 week range of $64.13-$94.71.
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Deutsche analyst says, "We are upgrading Air Products to Buy from Hold following the withdrawal of Air Products offer to acquire Airgas (NYSE: ARG). With the removal of the overhang of the Airgas bid, investors are again focusing on Air Products valuation discount versus Praxair. Historically, this discount has ranged from 1-3 P/E multiple points. Today it is 2.3 P/E multiple points. With Air Products possessing the same EPS growth profile as Praxair (13% CAGR 2011-12E), we believe Air Products’ discount versus Praxair will narrow to 1 multiple point (or less) as it delivers on our 13% CAGR EPS forecast...we are maintaining our ‘11E EPS of $5.65, up 13%, and our ‘12 EPS of $6.30, up 12%."
For more ratings news on Air Products & Chemicals Inc. click here and for the rating history of Air Products & Chemicals Inc. click here.
Shares of Air Products & Chemicals Inc. closed at $93.94 yesterday, with a 52 week range of $64.13-$94.71.
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