Jefferies Comments on Air Products (APD) Ahead of Analyst Day on June 9
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Price: $303.48 +0.09%
Rating Summary:
22 Buy, 13 Hold, 0 Sell
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Today's Overall Ratings:
Up: 10 | Down: 12 | New: 20
Rating Summary:
22 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 20
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Jefferies is maintaining its Buy rating and $111 price target on shares of Air Products & Chemicals Inc. (NYSE: APD).
The firm forecasts that APD will use the June 9 analyst day to recalibrate growth expectations. A list of things driving the growth is more demand for oxygen for combustion efficiency and for coal gasification; higher nitrogen volume requirements for photovoltaics and enhanced oil recovery; sustained growth in HyCO with an adjacency in waste-to-energy; and a more disciplined pricing environment due to industry consolidation.
Over the long-term, Jefferies expects the company to target a 14-18 percent EPS CAGR, which implies organic growth in 2015 of $9.50-$11.15.
The company should see less detrimental volatility in the chemicals and electronic materials businesses due to restructuring in recent years and a shift in new electronics wins to on-site projects.
Jefferies anticipates that Air Products will detail its logistics and productivity initiatives and argue for margins to 19-20 percent.
Due to the strong balance sheet, the firm forecasts that ADP will announce a buyback plan or raise its dividend modestly.
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 $89.61 yesterday.
The firm forecasts that APD will use the June 9 analyst day to recalibrate growth expectations. A list of things driving the growth is more demand for oxygen for combustion efficiency and for coal gasification; higher nitrogen volume requirements for photovoltaics and enhanced oil recovery; sustained growth in HyCO with an adjacency in waste-to-energy; and a more disciplined pricing environment due to industry consolidation.
Over the long-term, Jefferies expects the company to target a 14-18 percent EPS CAGR, which implies organic growth in 2015 of $9.50-$11.15.
The company should see less detrimental volatility in the chemicals and electronic materials businesses due to restructuring in recent years and a shift in new electronics wins to on-site projects.
Jefferies anticipates that Air Products will detail its logistics and productivity initiatives and argue for margins to 19-20 percent.
Due to the strong balance sheet, the firm forecasts that ADP will announce a buyback plan or raise its dividend modestly.
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 $89.61 yesterday.
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