Berenberg lowers Air Products target, flags Louisiana project risks

Berenberg cuts price target on industrial gas company Air Products APD.N to $275 from $320

Shares of APD fall marginally during premarket trading

The new price target represents a 7.2% upside to the stock's last close

Brokerage says that recent freezing of Exxon’s Baytown clean hydrogen project suggests that Louisiana blue hydrogen project may end with divestment of carbon sequestration and ammonia production assets

Brokerage expects weaker economics and higher cancellation risk on the Louisiana blue ammonia project, and a more uncertain contribution from project NEOM

"The alternative –that Air Products sells commodity ammonia potentially even without a carbon capture premium – is simply not attractive, in our view," brokerage says

16 of 25 brokerages rate the stock "buy" or higher, eight "hold" and one "sell" or lower; median PT is $312.67- data compiled be LSEG

Up to last close, stock down 11.5% YTD