Morgan Stanley Raises APD Estimates

Morgan Stanley reports that it has raised its F2011 estimates of Air Products and Chemicals, Inc

from $5.75 to $5.76. “After a recent trip to Asia, we expect slower electronics growth (-$0.10),” Morgan Stanley writes. “However, this is more than offset by a weaker US dollar (+$0.11).” Morgan Stanley believes that the Industrial Gases subsector is characterized by strong pricing power, robust cash flow, and significant exposure to emerging markets growth. The business model is based on long-term contracts that lock in healthy returns with less risk, relative to the rest of the Chemicals sector. Air Products and Chemicals currently trades for $82.66.