Neutral on Praxair Yet Again - Analyst Blog
02 5월 2013 - 10:30PM
Zacks
We currently maintained a Neutral
recommendation on Praxair Inc. (PX), being
optimistic about the company’s long-term growth opportunities and
cautious of near-term concerns surrounding it.
Why Neutral?
Praxair is a leading industrial gas producer and supplier having
operations in North and South America, Europe and Asia.
The company’s long-term growth prospects are bright as its products
are being increasingly used for various purposes across diverse
industries, including hydrogen for refining; oxygen for healthcare;
and nitrogen and carbon dioxide for oil and gas production.
By 2015, Praxair aims at achieving annual organic sales growth of
8%-12%; operating profit growth in the 10%-15% range and earnings
growth within the 12%-18% range.
Backlog for Praxair is high and exiting the first quarter 2013 was
approximately $2.5 billion; this is a testimony to customers’
preferences for the company’s world class technology, high quality
products and gas supply services.
Also, Praxair remains focused on developing new products and
applications, and innovative production and distribution
techniques. Acquisitions also remain the company’s favoured mode
for expanding its product portfolio. Among the many acquisitions,
the one pertaining to the merchant carbon dioxide business from
Tri-State Carbonic, LLC, NuCO2 and PortaGas deserve special
mention. Returning values to shareholders through dividends and
share buybacks is an attractive feature of the company.
Despite these long-term aspects, it’s the near-term headwinds that
keep us on the sidelines for the company. In the first quarter
2013, revenue growth was adversely impacted by lower working days
and negative foreign currency translation. Business was weak,
especially in South America and Europe while strengths were
witnessed in Asia and North America. Lower sales volumes in
industrial and military aviation coatings were detrimental to
performance in Surface Technologies.
For 2013, weaker economic conditions, forex impacts and benefits
from acquisitions influenced the company’s earnings guidance to
some extent.
Near-term concerns and first quarter 2013 results had an impact on
earnings estimates for Praxair. The Zacks Consensus Estimate for
2013 has gone down by 0.2% to $5.99 and for 2014 the estimate has
plummeted 0.3% to $6.80 in the last 7 days.
Others Stocks to Consider
Praxair currently has a market capitalization of $33.5 billion and
carries a Zacks Rank #3 (Hold). Other stocks to watch out for in
the industry are Shin-Etsu Chemical Co., Ltd.
(SHECY), with a Zacks Rank #1 (Strong Buy) while Celanese
Corporation (CE) and Methanex Corporation
(MEOH) each carries a Zacks Rank #2 (Buy).
CELANESE CP-A (CE): Free Stock Analysis Report
METHANEX CORP (MEOH): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
SHIN-ETSU CHEM (SHECY): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
Shin Etsu Chemical (PK) (USOTC:SHECY)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Shin Etsu Chemical (PK) (USOTC:SHECY)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024
Shin Etsu Chemical Company Ltd (PK) (OTC 시장)의 실시간 뉴스: 최근 기사 0
More Shin-etsu Chemical Co., Ltd. (PC) News Articles