BMO Capital Markets has reiterated a Market Perform rating on Air Products & Chemicals Inc. (NYSE:APD) and retained a $282.00 price target. The firm described the company’s latest quarter as "another solid quarter" in spite of continued pressure from macroeconomic conditions and disruptions in helium markets.
In its review, BMO pointed to management’s successful use of pricing and efficiency levers as evidence of disciplined execution under difficult conditions. The research note also said the company provided clarification on how its NEOM project affects the balance sheet and observed that Carbon Border Adjustment Mechanism - CBAM - risk associated with the LA project resides with partner Yara.
BMO characterized Air Products as a "show me story" that is delivering tangible results, and described the company’s guidance as "reasonably conservative." Despite that growing level of confidence, the firm maintained its neutral stance on the stock while signaling rising optimism. Complementing BMO’s view, InvestingPro data cited in the note showed four analysts had raised earnings estimates for the upcoming period and that expectations are for APD to return to profitability this year. The research also flagged that the company is trading at a high EBITDA multiple of 87.8x.
Air Products’ reported operating results for the first fiscal quarter of 2026 reinforced the analyst attention. The company posted earnings per share of $3.16, ahead of the $3.04 consensus forecast, representing a 3.95% positive surprise. Revenue came in at $3.1 billion versus an expected $3.05 billion, also topping analyst projections.
Following the earnings release, Bernstein SocGen Group increased its price target on Air Products to $315 from $300 and maintained an Outperform rating. Bernstein said the change reflects confidence in the company’s execution of its "back to basics strategy," especially progress on productivity initiatives.
Taken together, the analyst actions and quarterly beats underscore a period of affirmed execution for Air Products, while BMO’s neutral rating indicates measured investor expectations given valuation and market headwinds. The company’s clarified project exposures and partner-assigned CBAM risk for the LA development remain noted factors for analysts monitoring balance-sheet and regulatory outcomes.
What to watch next
- How sustained pricing and efficiency improvements translate into cash flow and margin durability.
- The market’s reaction to valuation metrics, particularly the elevated EBITDA multiple noted by BMO.
- Execution updates and partner arrangements related to NEOM and the LA project that could affect balance-sheet outcomes and regulatory risk allocation.