Industrial gas producer and supplier Praxair Inc. (PX - Free Report) remains keen on improving its offerings to better serve its large global client base. Currently, it is focused on the food and beverage industry. The company recently announced the acquisition of a carbon dioxide purification and liquefaction plant from PureCO2, LP. Financial terms of the deal were not disclosed.
As revealed, Price, UT-based PureCO2 is owned by Ferus, LP and is a producer and supplier of food and beverage grade liquefied carbon dioxide. The plant acquired by Praxair has the capacity to produce 300-tons per day of purified and liquefied carbon dioxide.
Such expansionary initiatives will help Praxair suitably cater to the growing demand for carbon dioxide in the food and beverage, water treatment and metal fabrication industries. Also, the capacity expansion will boost the company’s carbon dioxide-based supply network in the West Coast of the U.S.
We believe increasing use of industrial gases in manufacturing, transportation, healthcare, food & beverages, and metal fabrication industries will prove to be a boon for industrial gas producers, like Praxair. However, despite bright prospects, certain near-term headwinds continue to weigh on Praxair’s performance. The stock currently carries a Zacks Rank #3 (Hold) and has a market capitalization of $33.7 billion.
Over the last 60 days, the Zacks Consensus Estimate for Praxair has decreased 0.5% to $5.53 per share for 2016 and by 1.5% to $6.06 per share for 2017.
Better-ranked stocks in the chemical industry include Innophos Holdings Inc. (IPHS - Free Report) , Innospec Inc. (IOSP - Free Report) and Mitsubishi Chemical Holdings Corporation (MTLHY - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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