Air Products & Chemicals to Supply Gas in South Korea
Gas to LG Chem
On September 19, 2017, Air Products & Chemicals (APD) announced that it will supply oxygen to LG Chem in South Korea for its new production facility. The oxygen will be used to manufacture secondary batteries. The deal will further strengthen APD’s presence in South Korea. APD didn’t disclose the financial aspects of the deal.
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Kyo-Yung Kim, president of Air Products Korea, said, “LGC has been a strategic customer for Air Products, and we are honored to have their continued confidence in our capabilities to support their growth plans. Air Products is committed to growing together with the Korea market and our customers here. We will continue to look for opportunities to bring reliable and efficient solutions to the increasing gas demands of the burgeoning secondary battery market.”
APD stock remained muted last week
APD stock rose marginally by 0.10% and closed at $150.26 for the week ended September 22, 2017. The Materials Select Sector SPDR ETF (XLB) managed to outperform APD, rising 0.90% for the same period. XLB has invested 4.5% of its holdings in APD. Currently, APD is trading 3.3% above the 100-day moving average price of $145.47, indicating the prevailing bullishness of the stock.
On a year-to-date basis, the stock has underperformed the broader market and has risen 4.8%. Analysts see an upside in the stock and estimate APD’s 12-month target price at $159.56, implying a return potential of 6.2% from the closing price on September 22, 2017. APD’s relative strength index of 64 indicates that the stock is neither overbought nor oversold.