Oil prices rise on talk of Russia sanctions; bouncing off recent lows
Investing.com - BofA Securities raised its price target on Linde (NASDAQ:LIN) to $523.00 from $492.00 on Monday, while maintaining a Buy rating on the industrial gas company following its second-quarter earnings report. The stock, currently trading at $466.38 with a market capitalization of $219 billion, has delivered a solid 10.45% return year-to-date. According to InvestingPro data, the company maintains a "GOOD" overall financial health score.
Linde reported second-quarter earnings per share of $4.09, exceeding both the Street consensus of $4.02 and BofA’s estimate of $4.05, despite weakness in the company’s semiconductor sputter target business within its Global segment due to customer destocking. The company’s strong performance is reflected in its impressive 48.45% gross profit margin and robust return on equity of 18%.
BofA noted that while the top end of Linde’s 2025 guidance range remains unchanged, management now indicates this upper target assumes macro degradation versus the previous midpoint assumption, suggesting a more cautious outlook.
The firm highlighted that Linde continues to achieve better year-over-year pricing compared to its U.S. peers, particularly in Europe, though European volumes remain challenging for the company in contrast to competitor Air Products (NYSE:APD), which has shown growth in this market.
BofA expects Linde’s EPS growth to accelerate into 2026 with the startup of Woodside (OTC:WOPEY) complementing the rest of its portfolio, with the firm citing projected double-digit EPS growth as the driver behind its value premium assessment and Buy rating. With analysts setting targets ranging from $381 to $576, and a consensus recommendation of 1.84 (Buy), the stock shows strong potential despite currently appearing overvalued according to InvestingPro’s Fair Value model. For deeper insights into Linde’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Linde reported second-quarter earnings per share of $4.09, surpassing both the Street consensus of $4.02 and BofA’s estimate of $4.05. Following these strong earnings results, BofA Securities raised its price target for Linde to $523, maintaining a Buy rating. Similarly, JPMorgan increased its price target to $475, citing strong pricing dynamics despite flat to declining volumes. Bernstein also adjusted its price target slightly to $518, highlighting Linde’s impressive streak of 26 consecutive quarters of earnings beats. In addition to financial updates, Linde has commissioned a major helium storage cavern in Beaumont, Texas, aimed at enhancing the reliability of helium supply. This facility is one of the largest globally, with a capacity exceeding three billion cubic feet. Furthermore, Linde announced a quarterly dividend of $1.50 per share, payable on September 18, 2025, to shareholders of record on September 4, 2025. These developments indicate continued strategic growth and financial stability for the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.