PX

Praxair Inc

Industrial/Transportation


Presented:09/22/2017
Price:$137.60
Cap:$39.70B
Current Price:$11.20
Cap:$1.25B

Presented

Date09/22/2017
Price$137.60
Market Cap$39.70B
Ent Value$47.54B
P/E Ratio25.72x
Book Value$20.30
Div Yield2.29%
Shares O/S288.54M
Ave Daily Vol1,135,568
Short Int1.50%

Current

Price$11.20
Market Cap$1.25B
Praxair, Inc. engages in designs, engineers, manufactures, and operates facilities that produce and distribute industrial gases. It operates through the following segments: North America, Europe, South America, Asia, and Surface Technologies. The North America segment offers production facilities in the U.S., Canada, and Mexico. The Europe segment includes production facilities in Italy, Spain, Germany, the Benelux region, Scandinavia, and Russia which include cryogenic air separation plants. The South America segment covers cryogenic air separation plants, located in Brazil. The Asia segment comprises of production facilities located in China, Korea, India, and Thailand, which are cryogenic air separation plants. The Surface Technologies segment consists of coating services and manufactures coating equipment. The company was founded in 1907 and is headquartered in Danbury, CT.

Publicly traded companies mentioned herein: Linde AG (LIN GR), Praxair Inc (PX)

Highlights

The presenter is long shares of Praxair (PX), seeing upside from the pending merger with industrial gas competitor Linde that he views as “transformative.” In his opinion, company guidance for synergy targets and EPS growth are overly conservative. He models over $11.00 in 2020 EPS for the pro forma company, and sees up to 75% upside in share price over the next 3 years. Should the merger take place with the maximum mandated divestitures, there could still be ~30% of upside by the presenter’s model, thanks to the possibility of accretive divestitures and organic growth.

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Idea Discussion

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