Zacks Investment Research upgraded L'Air Liquide SA (AIQUY) to a Zacks Rank #1 (Strong Buy) on Jan 11, 2014.
Why the Upgrade?
In the last 60 days, the Zacks Consensus Estimate for L'Air Liquide SA increased 4.1% to $1.54 for 2014. This represents 8.8% year-over-year growth over the estimated earnings per share of $1.42 for 2013. For the next five years, earnings of the company are estimated to grow 9.5%.
At its Investor Day, held in Dec 2013, L'Air Liquide SA announced its long-term growth outlook. Within the 2011-2015 time period, the company intends to grow its revenues in the range of 5%–7% and implement a €1.3 billion investment program.
Further, by 2020, L'Air Liquide SA anticipates to achieve average revenue growth in the range of 6%–9% and return on capital employed (ROCE) in the range of 11%–13%.
Also in Dec 2013, L'Air Liquide SA won a major ultra-pure carrier gases contract in China. The company will invest over €18 million and will be required to supply ultra-pure carrier gases to SMIC (Semiconductor Manufacturing International Corporation).
Also, L'Air Liquide SA reported impressive third quarter 2013 financial results. Revenues, adjusted for currency impact, were up 5.1% year over year. This combined with a solid long-term growth outlook and major contract wins raises optimism for better financial results in the quarters ahead.
Other Stocks to Consider
L'Air Liquide SA is a $41.4 billion company engaged in the production and selling of air gases for industry, health, and environment sectors. Other stocks worth considering in the industry include Johnson Matthey plc (JMPLY), Compass Minerals International Inc. (CMP) and Koppers Holdings Inc. (KOP). While Johnson Matthey holds a Zacks Rank #1 (Strong Buy), both Compass Minerals and Koppers Holdings carry a Zacks Rank #2 (Buy).
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