Citi upgrades Linde stock rating to Buy on strong execution

Investing.com - Citi upgraded Linde (NASDAQ:LIN) from Neutral to Buy and raised its price target to $535.00 from $500.00 on Monday. The industrial gas giant, currently trading at $463.79 with a market capitalization of $220.3 billion, has shown strong momentum with an 11.5% gain over the past six months.

The research firm updated its estimates ahead of second-quarter 2025 results, citing better foreign exchange rates and productivity improvements across the industrial gas sector.

Citi highlighted Linde’s continued success with project execution and underlying price and productivity gains as key factors in the upgrade decision.

The firm identified three specific reasons for its more constructive view on Linde’s growth prospects: strong execution across price and productivity initiatives, high-quality project backlogs with near-term opportunities, and the company’s positioning to benefit from an eventual industrial recovery.

While maintaining a positive outlook on industrial gases broadly, Citi now prefers Linde over competitor Air Products and Chemicals (NYSE:APD), noting that while APD’s cost reduction efforts are positive, de-risking its capital structure and securing offtakes for major projects presents a larger risk profile.

In other recent news, Linde has made significant strides with a new $400 million deal to supply industrial gases for the Blue Point Number One low-carbon ammonia plant in Louisiana. This project, a joint venture with CF Industries (NYSE:CF), JERA, and Mitsui, will see Linde build and operate an air separation unit expected to be the largest in the Mississippi River corridor. Linde’s recent investor event highlighted their focus on low-carbon hydrogen and technological investments, with UBS maintaining a neutral rating and a price target of $485. UBS also pointed out Linde’s competitive positioning in the U.S. Gulf Coast due to its extensive network of gas production and storage facilities.

In terms of analyst ratings, Bernstein SocGen reiterated its Outperform rating on Linde, with a price target adjustment to $500. The analysts emphasized Linde’s robust financial model and ability to manage economic challenges, projecting a 7% year-over-year EPS growth by 2025. Bernstein highlighted Linde’s strong cash flow and high return on capital employed, positioning it as a top sector pick for the ninth consecutive year. Additionally, Linde’s earnings visibility is considered the strongest in the chemicals industry. The firm’s consistent ability to deliver growth and returns is noted as a key factor in its valuation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.