Jefferies Cuts Price Target on Air Products & Chemicals (APD) Following Cautious Outlook
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Price: $308.97 +1.13%
Rating Summary:
22 Buy, 13 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
22 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies is reiterating its Buy rating on shares of Air Products & Chemicals Inc. (NYSE: APD) following the release of its Q4 results, but is lowering its price target from $104 to $101 on slightly weaker than expected outlook.
Quarterly results were relatively inline as sales rose 11 percent on a 4 percent rise in volumes. Prices increased 2 percent as EPS rose $0.16 to $1.51.
Managements fiscal 2012 guidance has an EPS target of $5.90-$6.30 on 2-5 percent growth in global manufacturing. The company is forecasting 1-5 percent growth in the U.S., 4-9 percent growth in Asia, and a loss of 2 percent to a gain of 1 percent in Europe.
An analyst at Jefferies comments, "We view the lull in growth in FY12 as partly due to tough comparisons....Also, in the near-term we expect E&PM to be pressured by destocking downstream. Finally, end-market demand is "limping" globally, leading to some caution on pricing power. By FY13, however, the growth outlook improves: new sales force hires in the North America merchant business are driving new signings that should lift sales in mid-FY13, and pricing should improve. Also, incremental margins in merchant and E&PM should improve to 30%-40% in FY13-FY15."
Jefferies is maintaining its fiscal 2012 EPS estimate of $6.00, but is lowering its Q1 estimate from $1.40 to $1.33. The firm is also reaffirming its fiscal 2013 estimate of $6.85.
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 $82.74 yesterday.
Quarterly results were relatively inline as sales rose 11 percent on a 4 percent rise in volumes. Prices increased 2 percent as EPS rose $0.16 to $1.51.
Managements fiscal 2012 guidance has an EPS target of $5.90-$6.30 on 2-5 percent growth in global manufacturing. The company is forecasting 1-5 percent growth in the U.S., 4-9 percent growth in Asia, and a loss of 2 percent to a gain of 1 percent in Europe.
An analyst at Jefferies comments, "We view the lull in growth in FY12 as partly due to tough comparisons....Also, in the near-term we expect E&PM to be pressured by destocking downstream. Finally, end-market demand is "limping" globally, leading to some caution on pricing power. By FY13, however, the growth outlook improves: new sales force hires in the North America merchant business are driving new signings that should lift sales in mid-FY13, and pricing should improve. Also, incremental margins in merchant and E&PM should improve to 30%-40% in FY13-FY15."
Jefferies is maintaining its fiscal 2012 EPS estimate of $6.00, but is lowering its Q1 estimate from $1.40 to $1.33. The firm is also reaffirming its fiscal 2013 estimate of $6.85.
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 $82.74 yesterday.
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