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Research Alert: CFRA Reiterates Strong Buy Opinion On Shares Of Air Products And Chemicals Inc.

05/10/2021 10:52

02:50 PM EDT, 05/10/2021 (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 increase our 12-month target price by $21 to $341, 32.0x our FY22 (Sep.) EPS estimate, above APD's two-year average forward P/E of 26.8x, given our outlook for strong earnings growth from secular trends in clean energy. We lower our FY21 EPS estimate by $0.32 to $9.10 but keep FY22's at $10.65. APD posts Mar-Q adjusted EPS of $2.08 (including $0.10 to $0.15 negative impact from Covid-19) vs. $2.04, $0.03 below consensus; sales beat by 6.4%. The nearly 13% Y/Y sales increase was driven by higher energy cost pass-through (7%), favorable currency (4%), and higher prices (2%). Volumes were flat relative to last year, as volume growth from new plants, acquisitions, and increased sale-of-equipment activity was offset by reduced contributions from the Lu'An gasification project, lower merchant demand from Covid-19, and winter storm Uri's negative impact on the U.S. Gulf Coast. The restart of Lu'An is underway and we think closing the Jazan project financing could be a positive catalyst before the end of FY21.