Linde: Quality At Discount

Mare Evidence Lab5.9K FollowersFollow5ShareSavePlay(9min)Comment(1)SummaryLinde's EPS growth is underpinned by management actions, pricing power, cost control, and productivity, supporting a credible path to low-to-mid-teens EPS growth.Emerging growth vectors in space and electronics, alongside AI-driven productivity, provide additional upside to organic volume and margin expansion.Following the recent sell-off, shares offer 20% upside over 12 months plus a 1.5% dividend yield, reinforcing our Buy view on this high-quality, long-duration compounder. Lukassek/iStock Editorial via Getty Images Following our recent update on Air Products and Chemicals, we return to Linde plc (LIN). In our previous note, we upgraded Linde to overweight, as the key drivers behind our neutral viewThis article was written byMare Evidence Lab5.9K FollowersFollowBuy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck.Analyst’s Disclosure:I/we have a beneficial long position in the shares of LIN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsWhat underpins Linde's projected 8–10% EPS growth into 2026?Management levers—pricing, cost control, productivity—combined with favorable comps and sector tailwinds, are expected to drive 8–10% EPS growth, not fully priced in.How material are space and electronics to LIN's future sales mix?Space could grow from 1–2% to 5–8% of sales, while electronics, already a low-teens percent, benefit from rising gas intensity and a $1B backlog.What are the key risks to the Buy thesis and valuation for LIN?Risks include macro slowdown, FX, CAPEX inflation, project misexecution, and valuation risk at 28.5x P/E, though these are balanced by backlog stability and sector leadership.Recommended For You