UPDATE: Citi Downgrades Air Products & Chemicals

According to a research report published this morning, Citi has downgraded Air Products & Chemicals

from Buy to Neutral. Citi commented in the report, "We are moving to the sidelines on APD as the Merchant Gases and Electronics businesses remain challenged, as evidenced by a ~2% decline in EPS in 2Q, while competitors Praxair and Air Liquide have shown better growth. Much rides on a 2H12 recovery at APD, and an economic soft patch similar to 2H11 poses a risk to EPS growth. We remain positive on the industrial gas business model given long-term take or pay contracts, but see better value elsewhere in the sector." Citi maintains its $95 PT on Air Products & Chemicals, which closed yesterday at $86.29.