Breathing Room for APD

JPMorgan upgraded Air Products and Chemicals $APD ( ▼ 1.11% ) to Overweight and raised its price target to $310.

Analyst Jeffrey Zekauskas argued that in an environment of slowing growth, rising inflation, and the potential for higher interest rates, APD's stable earnings growth gives it a relative edge.

He expects the company's volumes to accelerate as higher oil prices drive up utilization rates in North American chemicals and refinery markets, both core end markets for the business.

APD's earnings have been under pressure from falling helium prices. But the Middle East war is changing that picture.

Supply disruptions are pushing helium prices higher, and Zekauskas expects the drag to narrow in fiscal 2026. Ninety-five percent of Air Products' helium business runs on long-term contracts, but 20% of those contracts renew annually. As they reset at higher rates, the earnings pressure eases.

"If there were any company that should benefit from a possible shortage of helium containers, it is Air Products," the analyst wrote.

Shares of APD are in the green year-to-date. Of the 25 analysts covering the stock, four rate it a Strong Buy, ten a Buy, and eleven a Hold. The consensus is cautiously constructive.

JPMorgan sees more. It believes the combination of slowing growth and rising inflation is precisely the environment where Air Products stands apart from the pack.

Most companies buckle when growth slows and prices rise. JPMorgan is betting this one floats.