Mixed Analyst Moves on Air Products (APD) Highlight Ongoing Sector Headwinds

Air Products and Chemicals, Inc. (NYSE:APD) is included among the 14 Best Dividend Aristocrats to Invest in Heading into 2026.

On December 19, Wells Fargo analyst Michael Sison downgraded Air Products and Chemicals, Inc. (NYSE:APD) to Equal Weight from Overweight and cut the price target to $250 from $330. The firm lowered ratings on four chemical names, citing channel checks that point to “trough-like conditions” lingering into the first half of 2026. The analyst flagged several pressures on the sector. These include a “muted” recovery in China and slow housing markets across the US and Europe. Wells Fargo sees interest rate cuts as a potential tailwind, but said meaningful catalysts to lift valuations in chemical stocks are likely still quarters away.

A day earlier, on December 18, Mizuho also reduced its price target on Air Products and Chemicals, Inc. (NYSE:APD) to $290 from $300. The firm maintained an Outperform rating as part of its 2026 outlook for the chemicals, agriculture, and packaging space. Mizuho noted that China’s rising exports continue to weigh on most basic chemical markets. The firm expects the March quarter to start off as weak as the December quarter ended for many companies.

Air Products and Chemicals, Inc. (NYSE:APD) is positioning itself as a leader in solutions tied to energy and environmental challenges, with a focus on gasification, carbon capture, and clean hydrogen. Several large hydrogen projects are already in progress and are expected to come online over the next few years.

Construction is about 80% complete at its NEOM Green Hydrogen Project in Saudi Arabia, which is scheduled to begin production by 2027. The company is also advancing a potential $8 billion blue hydrogen project in Louisiana and a $3.3 billion blue hydrogen project in Canada. In addition, a smaller $360 million green hydrogen project in Arizona could start operating in 2026.

Air Products and Chemicals, Inc. (NYSE:APD) remains a global leader in industrial gases and liquefied natural gas processing technology and equipment.

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