Wells Fargo analyst Michael Sison reiterated a Buy rating on Air Products and Chemicals (APD – Research Report) yesterday and set a price target of $365.00.
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Michael Sison has given his Buy rating due to a combination of factors including the promising outlook for Air Products and Chemicals in FY25 despite current industrial demand challenges. The forecasted earnings per share (EPS) growth and the strategic initiatives under the new CEO, Eduardo Menezes, are expected to drive positive financial performance. Sison notes potential for margin improvements, given APD’s larger onsite business and efforts to address existing execution issues.
Furthermore, the company is focusing on pricing strategies and operational efficiencies, such as the restart of the Uzbekistan facility, to enhance its performance in the second half of FY25. The planned pricing increments across all regions are seen as a way to counterbalance rising energy costs, especially in Europe. Additionally, the revised price target reflects confidence in the new management’s ability to execute strategies that could lead to significant upside potential for the stock.
According to TipRanks, Sison is a 3-star analyst with an average return of 0.9% and a 45.36% success rate. Sison covers the Basic Materials sector, focusing on stocks such as Air Products and Chemicals, LyondellBasell, and Celanese.
In another report released yesterday, Alembic Global also maintained a Buy rating on the stock with a $375.00 price target.