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Air Products and Chemicals: Analysts’ Recommendations

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Analysts’ consensus

The number of analysts tracking Air Products and Chemicals (APD) has more or less remained constant. Currently, 21 analysts are actively tracking Air Products and Chemicals. Among the analysts, 86% gave a “buy” recommendation, 14% gave a “hold” recommendation, and none of the analysts gave a “sell” recommendation for Air Products and Chemicals.

Analysts’ consensus indicates a target price of $188.45 for the stock, which implies a potential return of ~18.0% over Air Products and Chemicals’ closing price of $159.75 as of December 27. In the past three months, the stock’s consensus target price has shown a marginal decline. Overall, analysts are still positive on the stock despite the volatile market.

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Air Products and Chemicals posted better-than-expected fourth-quarter earnings. The company provided an adjusted EPS guidance of $8.05–$8.30 for fiscal 2019—a 10% increase. At the same time, Air Products and Chemicals’ backlog is building. The company continues to get new client orders to supply industrial gases, which will likely drive future growth. As a result, most of the analysts have given a “buy” recommendation.

Individual brokerage recommendations

  • JPMorgan Chase (JPM) has cut its target price for Air Products and Chemicals to $163.00, which implies a potential return of 2.0% from its closing price of $159.75 on December 27.
  • Barclays (BCS) has also cut Air Products and Chemicals’ target price to $184.00 from $190.00, which implies a potential return of 15.2% from its closing price on December 27.
  • UBS (UBS) has raised Air Products and Chemicals’ target price to $202.00, which implies a potential return of 26.4% from its closing price on December 27.

Investors looking for exposure to Air Products and Chemicals could invest in the Invesco S&P 500 Equal Weight Materials ETF (RTM), which has invested 4.2% of its portfolio in Air Products and Chemicals.

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