New facility in Minnesota
In a press release on December 12, Air Products and Chemicals (APD) announced that it will open a new air separation unit in the Twin Cities in Minnesota. Air Products and Chemicals will build, own, and operate the new separation unit. The new facility is expected to begin its operations in mid-2020. The facilities will provide industrial gases to local customers and distributors in the region.
The facility is expected to produce liquid nitrogen, oxygen, and argon. Seifi Ghasemi, Air Products and Chemicals’ chairman, president, and CEO, said, “Air Products’ goal is to be the safest and best performing industrial gas company in the world, providing excellent service to our customers. This is a prime example of making the necessary investment to provide that reliable and excellent service to our current and future customers.”
Stock price update
Air Products and Chemicals stock declined 1.1% and closed at $155.41 for the week ending December 14. As a result of the decline, Air Products and Chemicals traded 4.0 below its 100-day moving average price of $161.86. The company’s 100-day moving average price is marginally down from the high of $164.70, which indicates Air Products and Chemicals’ stable stock prices despite higher market volatility.
Analysts are bullish on Air Products and Chemicals stock. Analysts have projected a target price of $188.45, which implies a return potential of ~21.3% from the closing price on December 14. Air Products and Chemicals’ 14-day relative strength index of 43 indicates that the stock isn’t overbought or oversold.
Investors could hold Air Products and Chemicals indirectly through the Materials Select Sector SPDR ETF (XLB). XLB invested 4.4% of its portfolio in Air Products and Chemicals on December 14. XLB declined ~1.15% for the week.