NEW YORK (TheStreet) -- Jefferies increased its target price on Air Products (APD - Get Report) to $125 and set a "hold" rating. The firm noted the company will likely focus on levers to improve earnings with a new CEO.
The stock was flat when the market opened on Friday.
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- 35.90% is the gross profit margin for AIR PRODUCTS & CHEMICALS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.40% is above that of the industry average.
- Net operating cash flow has significantly increased by 92.84% to $546.90 million when compared to the same quarter last year. In addition, AIR PRODUCTS & CHEMICALS INC has also vastly surpassed the industry average cash flow growth rate of 13.08%.
- AIR PRODUCTS & CHEMICALS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, AIR PRODUCTS & CHEMICALS INC increased its bottom line by earning $4.73 versus $4.66 in the prior year. This year, the market expects an improvement in earnings ($5.80 versus $4.73).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 41.21% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- APD, with its decline in revenue, underperformed when compared the industry average of 13.6%. Since the same quarter one year prior, revenues slightly dropped by 0.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: APD Ratings Report