APD - Air Products And Chemicals: Shares Can Rise As It Executes On Its Backlog
2024-05-19 08:04:14 ET
Summary
- Air Products and Chemicals has seen disappointing performance due to concerns about capital intensity and mixed results.
- Despite lower revenue, APD's operating performance improved, with EBITDA rising by 4% and margins increasing.
- APD's units in the Americas and Europe performed well, while China continues to be a source of weakness.
- As it delivers on its backlog and begins generating blue & green hydrogen revenue, shares can rise towards 300.
Shares of Air Products and Chemicals ( APD ) have been a disappointing performer over the past year, over concerns about the capital intensity of its growth projects, alongside mixed results, though we did see an improvement in operating performance last quarter. I last covered Air Products in November , rating shares a buy, and unfortunately since that recommendation, APD has missed out on the market’s 21% rally, rising just 3%. This company has turned into a “show me” story given large project execution risk, but I believe investors are being paid to wait and believe shares can continue to rebound from February lows....
Air Products And Chemicals: Shares Can Rise As It Executes On Its Backlog