UPDATE: Monness Crespi Hardt Downgrades Air Products & Chemicals Following Recent Share Rally
In a report published Wednesday, Monness Crespi Hardt analyst Chris Shaw downgraded the rating on Air Products & Chemicals (NYSE: APD) from Buy to Neutral, but raised the price target from $97.00 to $103.00.
In the report, Monness Crespi Hardt noted, “We are downgrading APD shares from Buy to Neutral as the recent rally in the shares seem to already incorporate the strong outlook for 2014 and thus the valuation seems fair at these levels. APD shares hit new highs over $100 yesterday on a solid earnings report that was in-line with consensus expectations. Although we believe 2014 should show a significant improvement in growth for APD, we don't see it as enough to justify a price target high enough to continue to rate APD shares a Buy. We have increased our target to $103, from $97. We now see APD being valued on 2014 EPS of $6.05 at 17x PE. Multiples are likely to increase for both APD and PX somewhat as investors look to get in front of the growth from tonnage/on-site projects in 2014. Given APD's current share price, we see upside as limited and thus our change to a Neutral rating.”
Air Products & Chemicals closed on Tuesday at $100.65.
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