Morgan Stanley: APD Share Underperformance Unwarranted

Morgan Stanley said that it feels the underperformance of Air Products and Chemicals, Inc. (NYSE: APD) shares is unwarranted and views the recent sell-off as a buying opportunity.

“Air Products' F1Q11 adjusted EPS of $1.35 included a one-time ~$8mn loss at one of its joint ventures and a ~$5mn inventory valuation adjustment, neither of which was likely contemplated by the investment community,” Morgan Stanley writes.

“Excluding these items, recurring EPS was likely ~$1.39, well ahead of the consensus estimate of $1.34. We maintain our F2011 EPS estimate of $5.76, above consensus $5.68 and management's guidance of $5.55-5.70.”

Air Products and Chemicals currently trades at $86.51.