Air Products and Chemicals: Attractive After Resetting Expectations (Upgrade)

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Summary

  • Shares of Air Products and Chemicals, Inc. fell 2% due to disappointing results and guidance, amidst recent management changes and strategic uncertainties.
  • APD's weak quarter included earnings of $2.69, below consensus, and revenue of $2.9 billion, prompting a cut in full-year guidance.
  • New management aims to streamline APD, focusing on the core industrial gas business, reducing CapEx, and improving capital efficiency with potential buybacks.
  • Despite short-term challenges, I now rate APD stock a "Buy" due to clearer strategic direction, shareholder focus, and attainable guidance positioning for future outperformance.

Air Products headquarters in Allentown, PA, USA

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Shares of Air Products and Chemicals, Inc. (APD) fell 2% early on Thursday as investors digested disappointing results and guidance. This company has faced significant tumult in recent months, amidst an activist fight, departure of its long-tenured

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