Analyst Note
| Krzysztof Smalec |We are maintaining our $319 fair value estimate for narrow-moat-rated Air Products after the industrial gas firm reported its fiscal second-quarter earnings. We’ve made some puts and takes in our model, but a negative impact due to Air Products’ withdrawal from the Indonesia coal gasification project was offset by our slightly more optimistic near-term margin projections as well as time value of money. We view the name as modestly undervalued, with shares currently trading in 4-star territory.