Air Products & Chemicals, Inc.’s (APD) Price Target Lowered
February 08, 2010 3:49 PM
Credit Suisse (ADR) (NYSE: CS) has lowered the price target for Air Products & Chemicals, Inc. (NYSE: APD) from $100 to $85. The company has announced a hostile bid for Airgas, Inc. (NYSE: ARG) on Friday.
Air Products & Chemicals is offering $60 per share in cash to Airgas, Inc., which is a 38% premium to Airgas’s prior closing price. Air Products & Chemicals expects synergies of $250 million by the end of 2012 from the acquisition.
According to Credit Suisse, the acquisition will be positive for Air Products & Chemicals, Inc. at a price of $66 per share or below, neutral at a price of $67-$70 per share, and negative at anything above $70 per share.
The price target for Air Products & Chemicals has been lowered due to the uncertainty surrounding the hostile bid for Airgas, Inc. Credit Suisse has maintained an Outperform rating for Air Products & Chemicals, Inc.
