Morgan Stanley Reiterates Rating, Ups PT On APD

Morgan Stanley is reiterating its Overweight rating and is raising its price target from $105 to $115 on Air Products and Chemicals Inc. APD following the company's Investor Day, held last week. In the report, Morgan Stanley writes, “Last week, Air Products hosted its 2011 investor day in New York. Management gave new long-term goals of $15 billion in revenue and 20% EBIT margin by 2015, and, perhaps most important, targeted a 150 bps improvement in return on capital. The company also announced a new contract to supply an additional 200mn cubic ft/day of hydrogen to a large US refiner. This will increase the company's sales to this market by 9% in 2013, or ~$160-170 million.” APD closed on Friday at $91.17.