Linde plc Stock Price Targets

Comprehensive analysis of short, mid, and long-term price targets for Linde plc (LIN).

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Give me a comprehensive price target analysis for Linde plc (LIN).

Below is a comprehensive, data-driven analysis for Linde plc (LIN) as of 2025-10-10, including the three horizontal price targets (Low, Median, High) drawn on the chart and a full 3-part price-target analysis (short, mid, long term). I reference the earnings summary, EPS trends, and EPS revisions data you provided. All figures are anchored to the data you supplied.

Notes on targets and drawing

  • Targets drawn on the chart (horizontal lines) correspond to:
    • Low Target: 432.08
    • Median Target: 486.63
    • High Target: 540.10
  • These targets are derived from forward-looking earnings data (see “Price Target Analysis” below) using the 12-month forward EPS implied in your EPS Trend data (+1y ≈ 18.00321) and plausible P/E multiples.
  • Lines were extended 30 days into the future from today (2025-10-10) to 2025-11-09, with distinct colors:
    • Low Target (432.08): orange-red (#FF4500)
    • Median Target (486.63): blue (#1E90FF)
    • High Target (540.10): green (#32CD32)

Price Targets drawn on chart

  • Low Target: 432.08
  • Median Target: 486.63
  • High Target: 540.10
  1. Executive Summary
  • Investment thesis: LIN is a leading industrial gas and engineering services company with resilient margins, strong cash generation, and a diversified end-market mix. The business benefits from ongoing demand in chemical manufacturing, healthcare, electronics, and energy/industrial gas applications.
  • Price outlook: Moderately constructive over the next 12–24 months, with potential for multiple expansion if earnings momentum remains intact and macro conditions stabilize. Implied targets based on forward earnings and valuation suggest limited downside in a stable macro backdrop and upside through a return to more typical valuation multiples as growth drivers materialize.
  • Current stance: Hold to modestly constructive with a focus on cash-generative activities, disciplined capital allocation, and potential upside catalysts (energy transition applications, hydrogen economy, and healthcare/pharma demand).
  1. Fundamental Analysis

Valuation snapshot (as of 2025-10-10)

  • Current price: 458.16
  • Market cap: 214.84B
  • Enterprise value: 241.97B
  • Trailing P/E: 32.54
  • Forward P/E: 27.03
  • Price-to-Book: 5.58
  • Return on Equity (ROE): 17.31%
  • Return on Assets (ROA): 6.95%
  • Profit margins: 20.20%
  • Gross margins: 48.44%
  • Operating margins: 28.26%
  • Debt/Equity: 64.82%
  • Total cash: 4.79B
  • Total debt: 25.92B
  • Dividend yield: 1.28%
  • Five-year average dividend yield: 1.33%
  • Beta: 0.94

Interpretation:

  • Valuation is modestly elevated on a trailing basis (P/E ~32.5) but more reasonable on a forward basis (P/E ~27.0), reflecting an expected earnings ramp.
  • Leverage is moderate-to-high (D/E ~0.65), but cash and margins support solid financial health and coverage of debt service, with a reasonable dividend yield by industrials standards.
  • Health of cash generation, margins, and ROE support a constructive long-term view, though near-term multiples reflect cyclicality typical of industrial gas markets.

Earnings snapshot (latest quarter provided)

  • Quarter ended 2025-06-30:
    • Total Revenue: 8.495B
    • Gross Profit: 4.189B
    • Operating Income: 2.339B
    • EBITDA: 3.355B
    • Net Income (continuing ops): 1.766B
    • Diluted EPS: 3.73
    • Basic EPS: 3.75
    • Diluted shares: ~473.57M
    • Depreciation & Amortization: 0.942B
    • Cost of Revenue: 4.306B
  • Note: Q2’25 reflects solid operating profitability with margins consistent with a high-quality industrial gas business.
  1. Earnings Analysis

Recent Earnings Performance

  • The latest quarter (2025-06-30) shows:
    • Normalized EBITDA: 3.355B
    • Net Income: 1.766B
    • Diluted EPS: 3.73; Basic EPS: 3.75
    • Total Revenue: 8.495B
    • Gross Margin: 48.4%; Operating Margin: 28.3%
  • Quarterly progression (2019–2025 history implied by the data) indicates the business has been able to sustain high gross margins and coherent cost control, with EBITDA around the 3.1–3.4B range in the last few reported periods.

EPS Trends

  • EPS Trend data highlights:
    • 0q (current) Diluted EPS: 4.17695
    • +1q Diluted EPS: 4.23727
    • 0y Diluted EPS: 16.44943
    • +1y Diluted EPS: 18.00321
  • Interpretation:
    • There is a discrepancy between the quarterly reported Diluted EPS (3.73 in the earnings summary) and the EPS Trend figures (around 4.18 in the quarter). The EPS Trend figures may reflect different reporting lines or annualized figures, but the key signal is that the market appears to be implying a forward annual EPS in the high-teens (≈18.0) for the next 12 months. The +1y figure (~18.00) is the anchor for the forward-earnings-based target analysis.
  • EPS Revisions:
    • 0q: UpLast7Days = 0; UpLast30Days = 3; DownLast30Days = 8; DownLast7Days = 1
    • +1q: UpLast7Days = 1; UpLast30Days = 7; DownLast30Days = 3; DownLast7Days = 0
    • 0y: UpLast7Days = 1; UpLast30Days = 1; DownLast30Days = 1; DownLast7Days = 0
    • +1y: UpLast7Days = 1; UpLast30Days = 1; DownLast30Days = 1; DownLast7Days = 0
  • Interpretation:
    • The revision line shows more downgrades than upgrades in the near term (0q and 0y) but improvements in the +1q and +1y horizons, suggesting improving sentiment for the next year or two. Overall, revisions suggest cautious optimism about near-term EPS but a more constructive longer-term view as upgrades begin to outpace downgrades in the +1q/+1y frames.

Earnings Quality

  • Revenue growth: Historical quarterly revenue around 8.1–8.5B with a steady trend in 2024–2025, suggesting a reasonably stable top-line trajectory.
  • Margins: Gross margin around 48.4% and operating margin around 28.3% are solid for an industrial gas business, reflecting scale advantages and efficient cost structure.
  • Earnings sustainability: A healthy free cash flow potential (implied by EBITDA levels and modest cash on hand vs. debt) supports dividend sustainability and potential capital returns.

Technical Analysis

Current price action and key levels

  • Price (as of 2025-10-10): 458.16
  • 50-day moving average (latest value in data): 473.5
  • RSI (14): last value 25.9 (extremely near oversold territory)
  • MACD (12,26,9): last MACD = -2.6; Signal = -1.1 (negative trend)
  • Interpretation:
    • The stock is trading below its 50-day moving average, indicating near-term softness.
    • RSI near/under 30 implies potential for a short-term bounce, but MACD remains negative, signaling ongoing selling pressure or lack of momentum.
    • The gap between price and the 50-day MA suggests some upside potential if the earnings backdrop improves or multiple expansion occurs.

Moving averages

  • 50-day MA around 473.5 vs. price 458.2–458.16 area in the most recent data; price breaching below the 50-day MA is a caution signal, though not definitive, given the robust fundamentals.

RSI momentum indicators

  • RSI around 25.9 (late period), indicating oversold conditions. This can imply a potential near-term bounce if there is any catalyst or if risk assets recover.

MACD trend signals

  • MACD negative and below the signal line, consistent with a cautious near-term outlook; a cross above the signal line would be a bullish signal, but current momentum is skewed to the downside.

Analyst Consensus & Price Targets

Current analyst price targets

  • No explicit analyst price targets were provided in your dataset (Analyst Price Targets: {}).
  • Number of analysts covering LIN: Not provided in the data.

Catalysts and ideas

  • Hydrogen/industrial gas demand growth (industrial and healthcare segments).
  • Margin stability and cash flow generation enabling dividends and buybacks.
  • Potential EV/recovery cycles in industrial capital spending could support gas/chemical demand.

Price Target Analysis (Short, Mid, Long-Term)

  • Methodology: Using forward 12-month EPS (approx +1y EPS ≈ 18.00321 from the EPS Trend data) and plausible P/E multiples to derive target prices. The 12-month forward P/E given in your data is 27.030088; trailing P/E is 32.54, indicating a basis for both valuation scenarios.
  • Forward EPS reference: +1y EPS ≈ 18.00321 (from EPS Trend data). This is the anchor for 12-month targets.

Target calculations (based on forward EPS ~18.00321)

  • Low Target (P/E ~24.0): 18.00321 × 24.0000 = 432.08
  • Median Target (P/E ~27.030088, i.e., forward P/E): 18.00321 × 27.030088 ≈ 486.63
  • High Target (P/E ~30.0): 18.00321 × 30.0000 ≈ 540.10

Tabulated targets

  • Target Level | Target Price | Basis
  • Low Target: 432.08 | Forward EPS ~18.00 at P/E 24
  • Median Target: 486.63 | Forward EPS ~18.00 at Forward P/E 27.03
  • High Target: 540.10 | Forward EPS ~18.00 at P/E 30

Short-Term (3 months)

  • Target: 432.08
  • Justification: In the near term, macro headwinds or cyclicality could weigh on multiples; RSI oversold conditions suggest a potential but uncertain rebound, and the stock remains below the 50-day MA. This scenario uses a relatively lower multiple (P/E ~24) given near-term momentum concerns.
  • Key drivers: near-term demand volatility, cost/mix pressures, potential macro softness or sector headwinds.

Mid-Term (12 months)

  • Target: 486.63
  • Justification: The +1y EPS trend suggests roughly an 18.0 forward EPS; at a mid-range multiple near the forward P/E (27.03), the target is ~486.6. Improvement in revisions (+1q/+1y upgrades relative to downgrades) supports a constructive re-rating if momentum continues.
  • Key drivers: sustained margin discipline, stable cash flow, potential upside from hydrogen/industrial gas applications, and a stabilizing macro environment.

Long-Term (3+ years)

  • Target: 540.10
  • Justification: With structural demand for industrial gases, healthcare, and potential hydrogen economies, a higher multiple (P/E ~30) could be achievable if earnings power remains robust and capital allocation remains favorable (dividends and buybacks). The long-run scenario assumes ongoing earnings resilience and modest multiple expansion.
  • Key drivers: hydrogen economy growth, capital-light recurring revenue, and continued efficiency gains.
  1. Key Risks & Opportunities

Risks

  • Cyclical and energy-market sensitivity that could affect industrial gas demand and margins.
  • Leverage and debt load (D/E around 0.65) could pressure returns if operating conditions worsen or if capital needs rise.
  • Currency exposure, given global operations, and potential supply chain/logistics disruptions.
  • Regulatory/compliance risk in global markets.

Opportunities

  • Hydrogen and clean energy projects could unlock new growth avenues for industrial gases.
  • Healthcare and advanced manufacturing demand, with resilient long-term fundamentals.
  • Potential capital return expansion (buybacks/dividends) if free cash flow remains robust.

Investment Recommendation

  • Recommendation: Hold to modestly Buy on a 12–24 month horizon.
  • Rationale: LIN shows solid profitability, strong margins, and healthy cash generation. The forward EPS trajectory supports an ~6–18% to ~15%+ upside over 12–24 months depending on multiple expansion and operational performance. Near-term technicals suggest some risk due to price trading below the 50-day MA and a depressed RSI, but fundamentals remain intact with improving revisions in the +1q/+1y frame.
  • Expected return potential (12–24 months):
    • Base case: ~6–12% (486.63 target vs. 458 current)
    • Upside case: ~15–18% (540.10 target vs. 458 current)
    • Downside risk: ~-6% to -8% in a stressed macro scenario (432.08 target vs. 458 current)

Key tables (summary data)

  • Valuation snapshot | Metric | Value | |---|---| | Current price | 458.16 | | Market cap | 214.84B | | Enterprise value | 241.97B | | Trailing P/E | 32.54 | | Forward P/E | 27.03 | | Price to Book | 5.58 | | ROE | 17.31% | | ROA | 6.95% | | Profit margin | 20.20% | | Gross margin | 48.44% | | Operating margin | 28.26% | | Debt/Equity | 64.82% | | Total cash | 4.79B | | Total debt | 25.92B | | Dividend yield | 1.28% | | 5-year avg dividend yield | 1.33% | | Beta | 0.94 |

  • Recent earnings snapshot (2025-06-30) | Metric | Value (2025-06-30) | |---|---| | Total Revenue | 8.495B | | Gross Profit | 4.189B | | Operating Income | 2.339B | | EBITDA | 3.355B | | Net Income | 1.766B | | Diluted EPS | 3.73 | | Basic EPS | 3.75 | | Diluted Avg Shares | 473.57M |

  • EPS Trends (selected) | Type | Current | 7 days ago | 30 days ago | 60 days ago | 90 days ago | |---|---:|---:|---:|---:|---:| | Diluted EPS (0q) | 4.17695 | 4.1777 | 4.17838 | 4.18184 | 4.19822 | | +1q Diluted EPS | 4.23727 | 4.23721 | 4.23973 | 4.23041 | 4.22731 | | 0y Diluted EPS | 16.44943 | 16.44993 | 16.4496 | 16.44228 | 16.41743 | | +1y Diluted EPS | 18.00321 | 18.00724 | 18.00253 | 18.00550 | 17.95702 |

  • EPS Revisions (recent period counts) | Period | Up Last 7d | Up Last 30d | Down Last 30d | Down Last 7d | |---|---:|---:|---:|---:| | 0q | 0 | 3 | 8 | 1 | | +1q | 1 | 7 | 3 | 0 | | 0y | 1 | 1 | 1 | 0 | | +1y | 1 | 1 | 1 | 0 |

  • Technical indicators (last 60 days) | Indicator | Latest value | |---|---:| | 50-day MA | 473.5 | | RSI (14) | 25.9 | | MACD (12,26,9) | -2.6 (Signal -1.1) |

Key caveats

  • Analyst targets: The provided dataset contains no explicit analyst targets for LIN. The price targets above are internally derived from forward EPS and plausible P/E multiples, anchored to the +1y EPS signal (≈18.00) in the EPS Trends data.
  • Data caveats: There is a noted discrepancy between the quarterly Diluted EPS in the earnings summary (3.73 for 2025-06-30) and the EPS Trend values (around 4.18 in the 0q line). The forward-target calculation uses the EPS Trend +1y figure (≈18.00) as the forward-12-month EPS anchor, which is the data you provided for forward-looking EPS.

If you’d like, I can:

  • Update or refine the target prices using any alternative forward-EPS assumption or alternative multiple (e.g., using a sensitivity table across P/E 23–32).
  • Extend the chart-drawn lines to a different horizon (e.g., 45 or 60 days) or adjust colors.
  • Build a parameterized sensitivity model showing how the price targets change with shifts in forward EPS and P/E multiples.
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