Research Alert: CFRA Maintains Strong Buy Opinion On Shares Of Air Products And Chemicals, Inc.
12:15 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target price by $6 to $320, 34.0x our FY 21 (Sep.) EPS estimate, above APD's two-year average forward P/E of 25.9x, justified by the strong secular growth in the industry, driven by clean energy and sustainability trends. We decrease our FY 21 EPS estimate by $0.43 to $9.42 and our FY 22 EPS forecast by $0.30 to $10.65. APD posts Dec-Q adjusted EPS of $2.12 vs. $2.14, $0.07 below consensus, despite a top-line beat of 1.3%. Dec-Q adjusted EPS was negatively impacted by between $0.10 and $0.15 due to Covid-19 expenses, which also contributed to a 110-basis-point contraction in the adjusted EBITDA margin, to 39.2%. APD reached an agreement with Lu'An to temporarily reduce the fixed fee owed to APD while the plant is shut down in exchange for an extended length of the contract. APD management has gained some confidence on the outlook of closing the acquisition of the Jazan Gasifier from Saudi Aramco. Recent weakness in APD shares is a compelling buying opportunity, in our view.