Jefferies Raises EPS Estimates on Air Products (APD)

Jefferies published its report today on Air Products

raising its EPS forecast. In a note to clients, Jefferies writes, "We have updated our earnings bridge (Chart 1) to better reflect 1/ new on site projects which we estimate could add as much as $1.35 (26%) to earnings power by 2013E; 2/ operating leverage on existing capacity that could add $0.60 to EPS over the next couple of years; and 3/ pricing power in the merchant gas businesses that could add another $0.10-$0.15 to EPS. Assuming the global economic recovery persists into at least 2013, we are raising 2011E EPS $0.10 to $5.75 and 2012E $0.40 to $6.55." Jefferies maintains its Buy rating and increases its price target from $96 to $105. APD closed Friday at $87.61.