Berenberg lowers Air Products target, flags Louisiana project risks

Air Products and Chemicals

25/11/2025 12:01

** Berenberg cuts price target on industrial gas company Air Products APD.N to $275 from $320

** Shares of APD fall marginally during premarket trading

** The new price target represents a 7.2% upside to the stock's last close

** Brokerage says that recent freezing of Exxon’s Baytown clean hydrogen project suggests that Louisiana blue hydrogen project may end with divestment of carbon sequestration and ammonia production assets

** Brokerage expects weaker economics and higher cancellation risk on the Louisiana blue ammonia project, and a more uncertain contribution from project NEOM

** "The alternative –that Air Products sells commodity ammonia potentially even without a carbon capture premium – is simply not attractive, in our view," brokerage says

** 16 of 25 brokerages rate the stock "buy" or higher, eight "hold" and one "sell" or lower; median PT is $312.67- data compiled be LSEG

** Up to last close, stock down 11.5% YTD

 (Reporting by Dharna Bafna in Bengaluru)

 ((dharna.bafna@thomsonreuters.com))