-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target by $8 to $316, or 22.0x our FY 27 (Sep.) EPS estimate, in line with APD's three-year average forward P/E of 21.7x. We raise our FY 26 EPS estimates by $0.13 to $13.31 and FY 27's by $0.36 to $14.36. Following impressive FQ2 results (EPS +19% Y/Y), management raised FY 26 guidance reflecting confidence in the base business, though remained cautious on macro uncertainty. The company is pivoting toward higher-return traditional industrial gas projects, particularly in electronics and aerospace, while capital discipline remains paramount, with FY 26 capex expected down $1B to $4B. The electronics super-cycle presents significant opportunity, with helium volumes to Asian electronics customers expected to more than double by 2030. APD's helium supply chain has proven resilient despite Middle East disruptions, drawing on its Texas storage cavern. The downgrade reflects valuation more than fundamental concerns, as we see limited upside at current valuations given large project uncertainty.