Citi cuts Air Products stock target to $345, keeps Buy rating

Published 25/03/2025, 10:52
Citi cuts Air Products stock target to $345, keeps Buy rating

On Tuesday, Citi analysts revised their price target on Air Products & Chemicals Inc. (NYSE:APD) shares, reducing it to $345 from the previous $373 while maintaining a Buy rating on the stock. The adjustment follows recent strategic decisions made by the company, including its exit from certain projects.

Air Products & Chemicals, a company specializing in industrial gases, has seen its shares fall by approximately 10% following a successful activist campaign. Citi analysts believe that the stock is currently a consensus short among investors. However, they have a positive short-term outlook on the company, anticipating that the stock will rebound as a result of management’s recent actions.

The analysts highlighted Air Products’ decision to withdraw from the World Energy, Massena, and Carbon Monoxide Project in Texas. This move came after the introduction of a new CEO and Board. Citi views the company’s project updates and efforts to de-risk capital favorably, suggesting that these developments could lead to a positive reaction in the stock market.

Furthermore, Citi is looking forward to forthcoming updates from Air Products regarding their NEOM and Louisiana projects. They also expect the company to provide a detailed plan for additional pricing and productivity strategies.

The statement from Citi analysts reflects a tactical short-term stance on Air Products & Chemicals Inc., with an expectation that forthcoming management updates and strategic initiatives will drive a favorable response in the company’s share performance.

In other recent news, Air Products & Chemicals Inc. has announced a significant financial adjustment, with plans to record a pre-tax charge of up to $3.1 billion in its fiscal second quarter of 2025. This charge is due to the company’s decision to exit three major projects in the United States, a move influenced by new CEO Eduardo Menezes and the Board of Directors. Despite this charge, the company stated that its adjusted earnings per share for fiscal 2025 will remain unaffected. Jefferies has raised its price target for Air Products to $417, maintaining a Buy rating, with expectations of a gradual unveiling of the company’s updated strategic plan. UBS, on the other hand, has reduced its price target to $370 while maintaining a Buy rating, citing potential adjustments to the company’s FY25 earnings guidance. BMO Capital continues to rate the stock as Market Perform with a $346 price target, noting the proactive steps taken by the new CEO. Additionally, Air Products is set to present its Freshline® Smart Technology at the upcoming Seafood Expo North America, showcasing innovations aimed at enhancing efficiency in seafood processing. These developments reflect ongoing strategic shifts and technological advancements within the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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