Air Products & Chemicals Inc. Secures Green Hydrogen Deal with TotalEnergies Amid Analyst Confidence Boost
Key Ideas
  • Air Products & Chemicals Inc. secures a 15-year green hydrogen supply agreement with TotalEnergies, bolstering decarbonization efforts in Northern Europe.
  • Analysts from Citi, BMO Capital Markets, TD Cowen, and Mizuho Securities express confidence in Air Products, raising price targets based on the company's strategic positioning in the clean hydrogen market.
  • Air Products also expands its manufacturing facility in Missouri, achieves LNG production milestones in Mozambique, and collaborates with TotalEnergies on a renewable power MOU, demonstrating a strong focus on growth and innovation.
  • InvestingPro highlights Air Products' financial metrics, including a market capitalization of $62.05 billion, P/E ratio of 24.88, and a strong dividend track record, attracting investor interest.
Air Products & Chemicals Inc. has received an endorsement from Citi following the announcement of a 15-year green hydrogen supply agreement with TotalEnergies. The agreement entails Air Products supplying 70 kilotonnes per annum of green hydrogen to TotalEnergies for use in their Northern European refineries starting in 2030. This move aligns with TotalEnergies' goal to procure 500ktpa of green hydrogen by 2030 to reduce carbon emissions. The deal is also seen as a validation of Air Products' strategic approach in the clean hydrogen market, with analysts from various firms like BMO Capital Markets and TD Cowen raising their price targets for the company. Additionally, Air Products invested $70 million to expand its manufacturing center in Missouri to meet growing industry demand. The company achieved a significant milestone in LNG production in Mozambique and signed a renewable power MOU with TotalEnergies, highlighting its commitment to sustainable energy solutions. InvestingPro data reflects strong investor confidence in Air Products, with a market capitalization of $62.05 billion, promising financial ratios, and a consistent dividend track record over several decades.
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