BofA raised the firm’s price target on Air Products (APD) to $312 from $275 and keeps a Buy rating on the shares after the company announced last week that it signed a 15-year agreement to supply 70ktpa of green hydrogen to TotalEnergies (TTE) starting in 2030 to help decarbonize TotalEnergies’ European refineries, as well as a memorandum of understanding for the supply of renewable power. While the pricing for the supply agreement was not announced, this contract should enable Air Products to lock in higher pricing for the other 75% of NEOM volumes and the firm’s analysis of the NEOM green hydrogen project indicates a 10% pre-tax ROIC could be achieved with a hydrogen price of $6.38/kg, the analyst tells investors.
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