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BofA Double Upgrades Air Liquide to Buy Amid Record Electronics Backlog; Price Objective, Forecasts Up

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BofA Global Research double-upgraded Air Liquide (AI.PA) to buy from underperform, noting the industrial gas company's record backlog in electronics.

"Air Liquide is the number one supplier of gases used in the semiconductor manufacturing process such as high purity nitrogen and noble gases. Our analysis concludes that the Electronics franchise is set to organically grow at c14% through 2026-30E, effectively double the rate in consensus," analysts wrote in a Wednesday note. "We therefore see Electronics becoming an increasingly important contributor, driving c40% of our estimated 4.5% group organic growth in FY'27E and expect it also to be margin accretive."

Looking ahead, the research firm said its EBIT projections for 2028 to 2030 are above the Visible Alpha-compiled consensus by 2%, 4%, and 5%, respectively. "Given the multi-year nature of fab construction, the benefit from Electronics backlog will become more apparent in later years," BofA added.

The stock's price objective increased to 200 euros from 159 euros, as EPS forecasts for 2026 to 2028 rose to reflect the 1-for-10 free share attribution.

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