Air Products on the Rise: Mantle Ridge Involved

The shares of Air Products & Chemicals saw an impressive increase of over 7% after it was revealed that activist investor Mantle Ridge acquired a stake of more than one billion dollars in the company. Mantle Ridge, led by Paul Hilal, plans strategic changes with a particular focus on succession planning for long-standing CEO Seifi Ghasemi, as well as on improving capital allocation and corporate strategy. The investor believes that Air Products, despite its strong position in the industrial gases and clean hydrogen sectors, is traded at a discount compared to its competitors. This news was also positively received by analysts on Wall Street. Evercore ISI upgraded the stock and raised the price target from $305 to $365. The firm sees the involvement of Mantle Ridge as a potential for better capital allocation and risk management. Citi also expressed optimism by raising the price target to $345 and setting a 90-day positive catalyst for the stock. Experts emphasized that the investors' activities could enhance shareholder value, particularly since Air Products' previous underperformance compared to competitors like Linde and Air Liquide cannot be fully explained by market conditions. Jefferies shared the general optimism and upgraded Air Products from Hold to Buy, with a new price target of $364. The firm sees the possibility for Air Products to refocus on its core industrial gases business and move away from more speculative energy transition projects.