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On Thursday, Bernstein SocGen Group analysts reiterated their Outperform rating for Linde stock (NASDAQ: NYSE:LIN) and maintained a price target of $500.00, above the current trading price of $471.48. According to InvestingPro data, analyst targets range from $381 to $540, with the stock currently appearing overvalued based on Fair Value calculations. The reaffirmation came after Linde’s representation at the 41st Annual Bernstein Strategic Decisions Conference, featuring CEO Sanjiv Lamba and Head of Investor Relations Juan Pelaez.
The analysts highlighted Linde’s ability to manage economic challenges, emphasizing the company’s strengths in the gases model and contract protection, which help mitigate tariff risks. The company’s robust performance is reflected in its $33.02 billion revenue and $12.82 billion EBITDA for the last twelve months. Despite pressures on volumes, Linde is expected to continue creating value, with a focus on delivering targeted earnings per share (EPS) growth even in a challenging economic environment.
Linde has consistently beaten EPS expectations for 25 consecutive quarters since coming under a unified management team. With current diluted EPS at $13.78 and a strong financial health score of 2.88 (rated GOOD by InvestingPro), the company continues to demonstrate solid performance. Although maintaining this streak may be challenging without macroeconomic stabilization, the analysts anticipate a 7% year-over-year EPS growth in 2025. The company’s strong cash flow and returns are expected to persist, supported by a compound free cash flow/sales ratio exceeding 15% and a return on capital employed over 20%.
The report positions Linde as a top pick in the sector for the ninth consecutive year, citing its financial model’s reliability and ability to deliver consistent growth and returns. The analysts argue that Linde’s earnings visibility is the strongest in the chemicals industry and should be valued accordingly. For deeper insights into Linde’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Bernstein analysts have adjusted their price target for Linde, reducing it from $525 to $500 while maintaining an Outperform rating. The analysts, led by Peter Clark, emphasized Linde’s strong position in the industrial gases sector, noting its efficient business model and profitability prospects. They highlighted the company’s ability to capitalize on structural changes within the industry and growth opportunities in the energy transition and electronics sectors. Despite the reduced price target, Linde’s stock is trading at a forward price-to-earnings ratio of about 26 times, which is at the lower end of its historical premium range compared to peers. Bernstein’s analysis suggests that Linde remains a top pick in the sector for the ninth consecutive year, with a robust financial model that supports growth and earnings visibility. The firm believes Linde’s valuation could justify a 30 times prospective P/E ratio over the next twelve months. This reflects confidence in Linde’s ongoing success and market leadership, even amid rising tariffs.
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