In a report released today, John McNulty from BMO Capital downgraded Air Products and Chemicals (APD – Research Report) to a Hold, with a price target of $346.00.
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John McNulty’s rating is based on several concerns surrounding Air Products and Chemicals’ current financial outlook and strategic challenges. The company recently experienced a mixed performance in the first quarter, including a temporary benefit from a one-time helium sale which inflated earnings. This, coupled with weak demand in the helium market and additional supply pressures, has created uncertainty about sustainable growth in the near term.
Additionally, operational issues like the downtime of an asset in Uzbekistan and higher-than-expected corporate expenses have further complicated the financial landscape. As a result, McNulty believes that while new leadership may eventually enhance profitability through cost-saving measures, the immediate future may not meet investor expectations. Therefore, he suggests holding off on optimistic forecasts until the company can establish a clearer, more achievable path forward.
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 Air Products and Chemicals, Ashland, and Celanese.
In another report released today, J.P. Morgan also downgraded the stock to a Hold with a $320.00 price target.