Air Products and Chemicals is reported to be showing momentum that could see its performance exceed the sector average, potentially influencing future investment decisions.
Air Products and Chemicals is seen as potentially playing a leading supplier role in the energy transition and industrial gases markets. Its recent outperformance within the sector and upward revisions to earnings forecasts are cited as factors supporting the company's outlook, although execution of large-scale hydrogen and ammonia projects and the risk of an impact on returns on capital remain key concerns.
The exit from the LCEC project and recognition of up to $2.9 billion in pretax charges are said to create a source of tension between the improved earnings outlook and the rise in the share price. With other development projects, including NEOM and Edmonton, in the process of receiving capital investment, the company's performance outlook may be highly sensitive to the schedules and profitability of large-scale projects.
Analysis reports are said to forecast revenue of $16 billion and profit of $3.9 billion by 2029. Market participants' valuations place the company's fair value in the range of $342.42 to $354.42, and some views reported in the market suggest upside from the current share price.
Although multiple independent views exist on current trends in market sentiment and investor opinions, capital requirements and the possibility of project delays are recognised as factors dividing views on earnings and risk.