Rothschild & Co. has reiterated a buy rating on Linde, raising its price target from $550 to $560, suggesting a potential upside of 9% from its recent close of $515.59. Analyst Tony Jones highlights the burgeoning space transportation sector as a significant opportunity for Linde, which has been a supplier to NASA for about 60 years.
With SpaceX's impending public debut valued at $1.77 trillion, Linde's role in providing industrial gases for space missions is expected to expand. Jones notes that Linde's infrastructure is being developed near SpaceX's launch site, enhancing its competitive edge in a market where the distribution of cryogenic gases is complex and limited to a few suppliers.
He anticipates that the demand for Linde's services will increase significantly with the introduction of SpaceX's Starship, which could dramatically raise Linde's revenue per launch from under $4 million in 2025 to nearly $6 million by 2028.
This growth, coupled with a potential increase in contract backlogs, positions Linde favorably for future earnings and valuation improvements, supported by its strong management and established market presence