RBC Capital Adjusts Air Products Price Target, Maintains Outperform Rating

On November 7, 2023, RBC Capital revised its price target for Air Products and Chemicals Inc. (NYSE:APD) from $350 to $325 while maintaining an Outperform rating. The adjustment reflects a cautious outlook as analysts seek further clarity on the LA Blue project. Despite the lower target, RBC Capital noted that shares of Air Products experienced a rally following the company’s recent earnings report, indicating growing confidence in its turnaround strategy.

Air Products is positioning itself as a key player in addressing global energy and environmental challenges. The company is advancing its initiatives in gasification, carbon capture, and clean hydrogen technologies. Among its significant projects is the NEOM Green Hydrogen Project, located in Saudi Arabia, which is currently 80% complete and expected to begin production by 2027.

Additionally, Air Products is spearheading a substantial $8 billion blue hydrogen project in Louisiana, as well as a $3.3 billion project in Canada. The company is also planning a smaller $360 million green hydrogen facility in Arizona, which could begin operations in 2026. These projects are anticipated to drive long-term growth for Air Products in the evolving clean energy sector.

While RBC Capital recognizes the investment potential of Air Products, analysts express that certain artificial intelligence (AI) stocks may offer greater promise for substantial returns with lower risk. Investors seeking alternative opportunities might explore AI stocks identified in recent reports as having significant upside potential.

As Air Products continues to strengthen its position in the industrial gases and LNG processing technology market, the company’s progress in clean energy initiatives will be closely monitored by investors and industry experts alike.