Air Products and Chemicals extends its contract
On October 10, 2017, Air Products and Chemicals (APD) announced that it would continue operating and maintaining Barrick’s oxygen plant in Elko, Nevada. Air Products and Chemicals signed a contract and strengthened its relationship with Barrick. Air Products and Chemicals plans to implement a new oxygen plant that will help reduce Barrick’s operating cost and increase its gold production.
However, Air Products and Chemicals didn’t disclose the financial aspects of the deal. Air Products and Chemicals’ vice president of Equipment Sales, Plant Support, and Central Procurement, Victoria Brifo said, “We are honored by Barrick’s continued trust in our ability to not only successfully run this critical operation for them, but implement changes in process equipment and technology that will improve their overall operation.”
Air Products and Chemicals remained flat in the previous week
Air Products and Chemicals had a quiet week. It had a marginal gain of 0.10% and closed at $153.46 for the week ending October 13, 2017. It traded 4.70% above the 100-day moving average price of $146.63, which indicates an upward trend in the stock. Analysts expect more upside in the stock and provided a target price of $160.60 over the next 12 months. It implies a potential return of 4.60% from the closing price as of October 13, 2017. However, Air Products and Chemicals’ relative strength index of 69 indicates that the stock is getting closer to the overbought territory. An RSI of 70 and above indicates that the stock is overbought, while an RSI of 30 and below indicates that the stock is oversold.
Investors can hold Air Products and Chemicals indirectly by investing in the Materials Select Sector SPDR Fund (XLB), which has invested 5.20% of its portfolio in Air Products and Chemicals. The fund’s other holdings include Monsanto (MON), Praxair (PX), and LyondellBasell (LYB) with weights of 8.30%, 6.30%, and 5.20%, respectively, as of October 13, 2017.