Woking, the United Kingdom-based Linde plc (LIN) operates as an industrial gas and engineering company. Valued at $217.2 billion by market cap, LIN is the world's largest industrial gas company that offers industrial gases, technologies, and gas processing solutions that are used in production of clean hydrogen and carbon capture systems for energy transition, medical oxygen, and specialty gases for electronics.
Shares of this global multinational chemical company have underperformed the broader market considerably over the past year. LIN has gained 12.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 32.3%. In 2024, LIN’s stock rose 10.4%, compared to the SPX’s 24.7% rise on a YTD basis.
Narrowing the focus, LIN’s outperformance is apparent compared to the iShares U.S. Basic Materials ETF (IYM). The exchange-traded fund has gained about 12.1% over the past year. Moreover, LIN’s double-digit returns on a YTD basis outshine the ETF’s 3.5% gains over the same time frame.
LIN has recently underperformed due to sluggish industrial activity.
On Oct. 31, LIN shares closed down more than 3% after reporting its Q3 results. Its revenue stood at $8.4 billion, up 2.5% year over year. The company’s adjusted EPS increased 8.5% year over year to $3.94. LIN expects full-year adjusted EPS to be between $15.40 and $15.50.
For the current fiscal year, ending in December, analysts expect LIN’s EPS to grow 9% to $15.48 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 1.3% 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.”
The configuration has been fairly stable over the past three months.
On Oct. 31, Kepler Capital analyst Martin Roediger maintained a “Hold” rating on LIN with a price target of $495, implying a potential upside of 9.2% from current levels.
The mean price target of $508.12 represents a 12% premium to LIN’s current price levels. The Street-high price target of $550 suggests an upside potential of 21.3%.
