UPDATE: Goldman Sachs Downgrades Air Products & Chemicals to Neutral, Reiterates $97 PT Following Outperformance

In a report published Monday, Goldman Sachs analyst Robert Koort downgraded the rating on

from Buy to Neutral, but reiterated the $97.00 price target. In the report, Goldman Sachs noted, “We downgrade shares of APD to Neutral from Buy. Since being added to the Americas Buy List on Nov. 13, 2012, shares are up 14% vs. the S&P 500 up 19% and have outperformed industrial gas peers PX (up 8%) and ARG (up 11%). Over the last 12 months shares are up 15% vs. the S&P 500 up 19%. We now see less relative upside to shares following the recent outperformance where APD's NTM P/E multiple has expanded from 14X to 16X, closing its P/E discount to PX (19X). With meaningful compression of this valuation gap, we believe future outperformance vs. peers depends on positive EPS estimate revisions, which we are now less certain of given APD's relative overexposure to Europe and China.” Air Products & Chemicals closed on Friday at $91.88.