Air Products & Chemicals (APD): A New Best Idea Long Call

Air Products & Chemicals (APD): A New Best Idea Long Call - apd best idea

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 sales@hedgeye.com 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. 

HIGHLIGHTS:

  • 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 

CALL DETAILS

Ping sales@hedgeye.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.  

ABOUT HEDGEYE

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.

The Hedgeye team features some of the world's most regarded research analysts - united around a vision of independent, uncompromised real-time investment research as a service.