Air Liquide: Morgan Stanley ups target price

(CercleFinance.com) - In a report on chemicals stocks as a whole, Morgan Stanley has confirmed its buy rating ("overweight") on Air Liquide.
After adjusting its forecasts, the broker has raised its target price from 118 euros to 124 euros.

The French industrial and medical gases giant will publish its quarterly sales figures on 26 April.

Overall, the first quarter looks difficult for the sector in a context of reduced activity - particularly for cars - while weather conditions have been unfavourable. However, in the market, the stock has experienced a re-rating - both relative to cyclical and defensive stocks, while its premium relative to the MSCI Europe index has reached levels last seen in 2015 and 2016. Even so, investors should be wary, as current economic conditions mean that it is difficult to consider further upgrades in expectations at the sector level.

In the case of Air Liquide, Morgan Stanley is keenly awaiting quarterly sales figures, with trends seen from the fourth quarter deemed reassuring. In spite of a difficult comparison basis, analysts expect organic growth of the Gas & Services division of 4.6%. Next on the agenda are figures for orders and management's comments on group margins.



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