(News Bulletin 247) – Berenberg on Thursday raised its recommendation on the Air Liquide stock to ‘buy’ against ‘hold’ so far, with a price target raised from 165 to 178 euros.
In its research note, the German establishment praises the “better than expected” operational discipline shown by the industrial group.
“The reason why we posted a neutral view on Air Liquide for some time was due to our concerns about possible overinvestment in the very fragmented hydrogen and ammonia segment,” the intermediary points out.
Berenberg explains that he feared that this strategy would lead the group to move away from its traditional economic model based on firm purchase contracts (‘take-or-pay’) so characteristic of the sector.
‘The last quarters have, on the contrary, provided proof that the company was paying attention to its investment policy, despite a strengthened balance sheet which could encourage it to increase spending,’ he concludes.
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