Join Hedgeye's Materials Team – led by Sector Head Jay Van Sciver – for the presentation of their New Best Idea LONG: Air Products & Chemicals (APD). The call will take place on Thursday June 22, at 11 am ET.
Email firstname.lastname@example.org for more information.
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During the presentation, the Materials Team will run through key points as to why APD is on their Best Ideas List and short-term, large project drivers.
"As projects mature and the company invests substantial available capital in PX/Linde divestitures, other well-suited deals, or buybacks, it becomes hard to avoid well above consensus EPS forecasts," says Hedgeye Sector Head Jay Van Sciver.
KEY DISCUSSION POINTS:
- High Quality Capital Deployment Opportunities: We expect outperformance as overhangs fade and high quality capital deployment opportunities finally arrive.
- Favorable Economic Trends: There are many reasons to favor the industrial gas industry at present given the favorable economic and consolidation backdrop.
- Looming APD Overhangs are Behind Us: Overhangs on APD shares, from the not-so-straightforward Yingde deal to changes in the position sizes of certain activist funds, have largely moved out of the picture.
- Available Cash to Invest or Buyback Shares: Maturing projects will allow them to invest substantial amounts of available capital in PX/Linde divestitures, other well-suited deals, or buybacks.
- Destinations for APD capital deployment, benefits and risks
- A look at likely Linde + PX antitrust-related divestitures, impact on APD in specific regions
- Margin trends and mix, including the short-term, large project-related drivers
- Relevance of further consolidation on regional pricing and industry structure
- Progress and opportunities on improvements to APD operations and organization
- Valuation scenarios and a strategic approach to the group
Ping email@example.com for more information. Please note if you are not a current subscriber to our Materials research there will be a fee associated with this call.
Hedgeye Risk Management is a leading independent provider of real-time investment research. Focused exclusively on generating and delivering investment ideas, the firm combines quantitative, bottom-up and macro analysis with an emphasis on timing.
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