Deutsche Bank Raises Price Target on Air Products & Chemicals (APD)
Deutsche Bank maintained a Buy rating on Air Products & Chemicals Inc. (NYSE: APD) and raised its price target to $120.00 (from $112.00). Hedge fund manager Bill Ackman recently disclosed a stake in the company, and this may help accelerate return to historical multiple, thinks analyst David Begleiter.
"While we do not believe Pershing Square's ownership in APD will have a material impact on APD's operations, strategy, or portfolio, the activist fund's involvement has accelerated the closure of APD's historic valuation discount of 0.5 to 4.5 P/E pts vs PX. Our view has been the valuation gap would narrow to the low end of the range as APD improved on execution and earnings growth, both of which we believe are underway owing to a host of cost/portfolio actions and a peer best project backlog ($3B)," he said.
For an analyst ratings summary and ratings history on Air Products & Chemicals Inc. click here. For more ratings news on Air Products & Chemicals Inc. click here.
Shares of Air Products & Chemicals Inc. closed at $108.64 yesterday, with a 52 week range of $76.78-$109.98.
"While we do not believe Pershing Square's ownership in APD will have a material impact on APD's operations, strategy, or portfolio, the activist fund's involvement has accelerated the closure of APD's historic valuation discount of 0.5 to 4.5 P/E pts vs PX. Our view has been the valuation gap would narrow to the low end of the range as APD improved on execution and earnings growth, both of which we believe are underway owing to a host of cost/portfolio actions and a peer best project backlog ($3B)," he said.
For an analyst ratings summary and ratings history on Air Products & Chemicals Inc. click here. For more ratings news on Air Products & Chemicals Inc. click here.
Shares of Air Products & Chemicals Inc. closed at $108.64 yesterday, with a 52 week range of $76.78-$109.98.