Vertical Research analyst Kevin McCarthy upgrades $Air Products & Chemicals (APD.US)$ to a buy rating, and adjusts the target price from $261 to $336.
According to TipRanks data, the analyst has a success rate of 66.0% and a total average return of 8.3% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Air Products & Chemicals (APD.US)$'s main analysts recently are as follows:
The presence of an activist stake in Air Products presents an opportunity for the company to redefine its story around 'quality growth.' This change could align shareholder returns more closely with company initiatives as opposed to policy changes and commodity spreads. By comparing valuations to a similar company on a sum-of-the-parts basis, there is potential to unlock earnings, suggesting a significant upside for the company's shares.
The sentiment regarding Air Products' potential for earnings growth has been cautious, pending transformative shifts in the company's capital allocation and risk management strategies. With credible advocacy for change now in place, there is a newfound reassurance for investors, enhanced by positive fundamental outlooks projected into FY25. Recent developments have clarified the company's trajectory, alleviating apprehensions surrounding the forthcoming FY25 guidance. Analysis indicates a potential earnings target that could set expectations at the upper range, thus mitigating fears of an earnings shortfall.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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