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Wall Street Analysts’ Views on Praxair ahead of 4Q17 Earnings

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Dec. 4 2020, Updated 10:53 a.m. ET

Analysts’ consensus on Praxair

Praxair (PX) continues to get the attention of a lot of analysts. Of the 20 analysts currently tracking Praxair, 65% of them have recommended a “buy,” 30% have recommended a “hold,” and 5% have recommended a “sell.”

The analyst consensus for Praxair suggests a target price of $160.65. However, the stock is already trading 2.1% above that. In the past three months, analysts have raised Praxair’s target price from $143.67 to the current price.

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Many analysts say ‘buy’ or ‘hold’

Praxair’s strong performance in 3Q17 beat analysts’ estimates. Praxair also raised its fiscal 2017 adjusted EPS (earnings per share) guidance to $5.78–$5.83. Praxair received 90% approval from Linde AG shareholders for the merger. If the merger goes through, it will form the biggest industrial gas supplying company. Praxair has also signed several long-term deals that will increase its order backlog, which suggests future growth. That could explain why many analysts have recommended a “buy” or a “hold” for Praxair.

Recommendations of individual brokerage firms

  • Deutsche Bank (DB) has rated Praxair a “hold” and recommended a target price of $175, implying a return potential of 6.6% over the closing price of $164.15 on January 12, 2018.
  • UBS (UBS) has raised its target price to $176 from its previous recommendation of $160. That implies a return potential of 7.6% from the closing price on January 12, 2018.
  • JPMorgan (JPM) has raised its target price for Praxair to $172 from $156, which implies a return potential of 4.8% from the closing price on January 12, 2018.

Investors can indirectly hold Praxair by investing in the Materials Select Sector SPDR ETF (XLB), which has invested 6.7% of its portfolio in PX as of January 12, 2018.

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