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

Core Viewpoint - Air Products and Chemicals, Inc. (NYSE:APD) is highlighted as a strong investment opportunity in the hydrogen sector, despite a recent stock decline following a partnership update with Yara [1][2]. Group 1: Partnership and Investment Details - Bernstein SocGen Group reiterated an Outperform rating on Air Products, maintaining a price target of $320, citing the partnership with Yara for large-scale, low-emission ammonia projects in the US and Saudi Arabia [1][2]. - The collaboration is expected to enhance long-term demand for both blue and green hydrogen, addressing investor concerns regarding hydrogen demand [2]. - Yara is considering a potential investment of $2-2.25 billion in ammonia production, storage, and shipping assets, which would cover approximately 25% of the Darrow project cost [2]. Group 2: Market Outlook and Growth Potential - The de-risking of projects through this partnership is seen as a significant factor supporting future stock growth, alongside long-term growth potential in industrial gases and favorable market conditions [3]. - Air Products is recognized as a leading player in the industrial gases sector, developing and operating some of the largest clean hydrogen projects globally [3].