The U.K.-based Linde plc (LIN) operates as an industrial gas and engineering company. Valued at $216.9 billion by market cap, LIN is the world's largest industrial gas company that offers industrial gases, technologies, and gas processing solutions that are used in production of clean hydrogen and carbon capture systems for energy transition, medical oxygen, and specialty gases for electronics.
Shares of this global multinational chemical company have underperformed the broader market considerably over the past year. LIN has gained 20.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 24.9%. In 2024, LIN’s stock rose 11.1%, compared to the SPX’s 16.2% rise on a YTD basis.
Narrowing the focus, LIN has outpaced the iShares U.S. Basic Materials ETF (IYM). The exchange-traded fund has gained about 7.9% over the past year. Moreover, LIN’s double-digit returns on a YTD basis outshine the ETF’s 2.1% gains over the same time frame.
On Aug. 2, LIN shares closed up marginally after reporting its Q2 results. Its sales were $8.3 billion, up marginally year over year. Its adjusted EPS increased 7.8% year over year to $3.85. For Q3, LIN expects adjusted EPS to be between $3.82 and $3.92, up 5% to 8% from the prior-year quarter. For fiscal 2024, the company expects adjusted EPS to be between $15.40 and $15.60, up 8% to 10% year over year.
For the current fiscal year, ending in December, analysts expect LIN’s EPS to grow 9.4% to $15.54 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters. Moreover, the company surpassed its consensus EPS estimate by 1.6% in the previous quarter.
Among the 20 analysts covering LIN stock, the consensus is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
This configuration is more bullish than three months ago when 12 analysts gave the stock a “Strong Buy.”
On Aug. 13, UBS Group AG (UBS) analyst Geoff Haire maintained a “Hold” rating on LIN with a price target of $487, implying a potential upside of 6.8% from current levels.
The mean price target of $488.17 represents a 7% premium to LIN’s current price levels. The Street-high price target of $540 suggests an upside potential of 18.4%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
