25 September 2008 15:12 [Source: ICIS news]
TORONTO (ICIS news)--JP Morgan and Deutsche Bank have reduced their profit estimates for US industrial gases major Praxair mainly due to slower growth in Europe, a stronger US dollar, and the recent US Gulf Coast hurricanes, they said on Thursday.
Europe appeared to have slowed dramatically, JP Morgan said in a research note to clients, adding that Praxair’s primary markets in Europe were ?xml:namespace>
Another negative was the strengthening of the US dollar which would likely slow demand for packaged gases in the
Meanwhile, hurricanes Gustav and Ike may have cost Praxair’s $75m (€51m) in third-quarter revenues, although the overall impact on the company appeared to have been minimal, the bank said.
Deutsche Bank also cited these factors in cutting its estimates.
But both banks agreed that Praxair remained a strong company.
“We remain confident in Praxair's ability to deliver consistent earnings growth in 2009 and 2010 driven by continued strong energy, environmental, and infrastructure driven demand trends, growth in Asia and
JP Morgan cut its 2008 earnings per share (EPS) estimate for Praxair from $4.35 to $4.30 and its 2009 projection from $5.00 to $4.70. It has a “neutral” rating on the stock.
Deutsche cut its 2008 estimate by 5 cents to $4.25 and retained its 2009 EPS estimate of $4.85. It rates the stock “buy”.
On Wednesday, Citigroup downgraded Praxair’s shares to “hold” from “buy” and reduced its 2008 and 2009 EPS estimates to $4.19 and $4.85, respectively.
($1 = €0.68)
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