With a market cap of $60.78 billion, Air Products and Chemicals, Inc. (APD) is an industrial gas company headquartered in Allentown, Pennsylvania. Specializing in producing and distributing atmospheric gases, process and specialty gases, and related equipment, Air Products serves a wide range of industries, including energy, healthcare, and electronics.
APD has significantly underperformed the broader market over the last year. The stock has declined 4.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.1%. In 2024, the stock has declined marginally, compared to SPX's 17.3% gains on a YTD basis.
Narrowing the focus, APD also underperformed the iShares U.S. Basic Materials ETF (IYM). The exchange-traded fund has gained 2.4% on a YTD basis.
On Aug. 1, Air Products & Chemicals surged 8% after posting Q3 adjusted EPS from continuing operations of $3.20, surpassing the consensus estimate of $3.03.
For the current fiscal year, ending in September, analysts expect APD’s EPS to grow 7% to $12.32 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on one other occasion.
Among the 19 analysts covering APD stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, eight “Holds,” and one “Strong Sell.”
On Aug. 5, Analyst Steve Byrne of Bank of America Securities reiterated a “Buy” rating on Air Products and Chemicals, with a price target of $317, which indicates a 15.9% upside from the current levels.
The mean price target of $297.68 represents an 8.8% premium to APD’s current price levels. The Street-high price target of $340 suggests an upside potential of 24.3%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
