UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Air Products & Chemicals
In a report published Monday, Deutsche Bank reiterated its Buy rating on Air Products & Chemicals (NYSE: APD), but lowered its price target from $100.00 to $95.00.
Deutsche Bank noted, “FY13 guidance disappointing but backlog intact. 3 P/E discount to PX. Buy. Air Products shares fell 6% following disappointing FY13 guidance (7% below consensus) and the company's acknowledgement that it would not meet its 2015 financial goals. While Air Products forecast of a continuation of difficult macro conditions in FY13 (weakness in Europe, electronics and Asia) was, in our view, largely, reflecting in consensus and priced into the shares, the company's acknowledgement that customers are delaying new project start-ups was concerning as Air Products record $3B backlog is the heart of its investment story. With project delays likely transitory and valuation compelling at 13.6x C13E EPS, and a 3x P/E discount to Praxair, Buy.”
Air Products & Chemicals closed on Friday at $79.99.
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