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Praxair (PX) Secures Gas Supply Contract From EverDisplay

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Praxair, Inc. (PX - Free Report) recently inked a long-term deal with EverDisplayOptronics (‘EDO’) in a bid to strengthen its foothold in China. Per the contract, the company will supply high-purity oxygen and nitrogen, helium, and various other gases to EDO.

Over the last three months, shares of this Zacks Rank #2 (Buy) stock have gained 10.9%, outperforming 7.2% growth recorded by the industry.

The company believes its ongoing organic and inorganic moves, diversified product portfolio and large clientele base will help boost revenues and profitability in the quarters ahead.

Inside the Headlines

EDO is the foremost mass producer of 4.5-generation Active-matrix organic light-emitting diode (AMOLED) displays in China. The company would invest more than $4.1 billion in its latest Shanghai-based 6th generation AMOLED project. It is the sole AMOLED project assisted by the government of Shanghai, and is recognized as a focal project of the 13th five-year plan of China.

EDO distinguishes Praxair as a reliable, safe and competent gas supplier. As per the aforementioned contract, Praxair will own, construct and operate numerous air separation plants in China in order to provide the required gases to EDO. Notably, the company will supply almost 720 tons of nitrogen each day for EDO’s 6th generation AMOLEDventure. The majority supply is estimated to commence from mid-2018. Additional supplies will likely begin from 2019.

Praxair noted that China is currently considered the fastest growing as well as the largest AMOLED market. The company stated that this gas-supply contract will further enlarge its electronics clientele in the country over the long term.

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BASF SE (BASFY - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company’s earnings per share (EPS) are projected to be up 8.7% in the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.

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