As previously reported, Wells Fargo upgraded Air Products to Overweight from Equal Weight with a price target of $345, up from $307. The firm cites its mega project backlog that is expected to come on stream over the next several years boosting EPS growth. Wells is also raising its FY24 EPS growth above the Street to 14%. Air Products is currently trading at FY24 EV/EBITDA of 13.0-times toward the low end of its 7-year average EV/EBITDA range of 12.0-times to 16.0-times. With EPS growth accelerating to mid-teens in FY24 and potentially approaching 20% in FY25 and beyond given its backlog of mega projects, the firm believes Air Products can see multiple expansion to the higher end of the range.
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