Air Products and Chemicals (APD – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst John McNulty from BMO Capital maintained a Buy rating on the stock and has a $366.00 price target.
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John McNulty has given his Buy rating due to a combination of factors despite some recent challenges faced by Air Products and Chemicals. The company’s recent earnings report showed mixed results, with earnings per share meeting preannounced expectations but EBITDA falling short. However, the company’s valuation has become more attractive due to market sell-offs and cost overruns on large-scale projects, presenting a potential buying opportunity.
Moreover, Air Products and Chemicals is on the verge of finalizing longer-term contracts related to its blue and green hydrogen projects. These projects are expected to enhance the company’s credibility and could potentially drive stock performance in the future. McNulty anticipates that with the new CEO, Eduardo Menezes, taking the helm, the company may reset its fiscal year expectations, potentially providing a more favorable outlook for investors.
According to TipRanks, McNulty is a 4-star analyst with an average return of 2.5% and a 53.24% success rate. McNulty covers the Basic Materials sector, focusing on stocks such as Ashland, Air Products and Chemicals, and RPM International.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $385.00 price target.