Bernstein Reiterates Outperform on Air Products (APD) After Yara Partnership Update

Air Products and Chemicals, Inc. (NYSE:APD) is one of the best hydrogen stocks to buy right now. On December 9, Bernstein SocGen Group reiterated an Outperform rating on Air Products and Chemicals, Inc. (NYSE:APD) stock and kept the price target at $320. The analysts cited Air Products’ update on the negotiations with Yara. The negotiations center on plans for the companies to partner on large-scale, low-emission ammonia projects in the US and Saudi Arabia. The partnership is designed to de-risk these projects and leverage both companies’ expertise in hydrogen production and ammonia distribution. But Air Products’ stock fell 11% after this update, which Bernstein described as an “overreaction”.

According to the analysts, the collaboration is “broadly positive in terms of long-term offtake demand for both blue and green hydrogen.” They added that it addresses key investor concerns about demand for hydrogen. The deal involves Air Products’ Louisiana Clean Energy Complex and the NEOM Green Hydrogen Project in Saudi Arabia. Yara is considering buying assets related to ammonia production, storage, and shipping, with a possible investment of $2-2.25 billion. This covers about 25% of the Darrow project cost.

To Bernstein, this de-risking is one of the major factors that will support future stock growth. Other factors include long-term growth potential in industrial gases and supportive market conditions.

Air Products and Chemicals, Inc. (NYSE:APD) is a US-based industrial gases company. It develops, builds, owns, and operates some of the world’s largest clean hydrogen projects.

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Disclosure: None. This article is originally published at Insider Monkey.