Linde Downgraded to Neutral by J.P. Morgan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy LIN?
Source: seekingalpha
- Rating Downgrade Impact: J.P. Morgan downgraded Linde from Overweight to Neutral with a $455 price target, anticipating flat performance in 2026 similar to last year's, indicating growth challenges ahead.
- Price Growth Stagnation: The analyst highlighted that Linde's average prices have remained flat for two consecutive quarters, primarily due to lower helium prices, which could negatively impact future profitability.
- Competitive Pricing Dynamics: Linde's competitor, Air Products, has also seen flat prices for three straight quarters, with the analyst suggesting that this pricing dynamic increases medium-term earnings risk, potentially affecting investor confidence.
- Trading Multiple Outlook: The analyst believes Linde's trading multiples are unlikely to expand until the company reports a more positive pricing dynamic, indicating that investors should monitor future pricing strategies to assess the company's profit potential.
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Analyst Views on LIN
Wall Street analysts forecast LIN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LIN is 499.07 USD with a low forecast of 455.00 USD and a high forecast of 540.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
15 Buy
2 Hold
0 Sell
Strong Buy
Current: 459.690
Low
455.00
Averages
499.07
High
540.00
Current: 459.690
Low
455.00
Averages
499.07
High
540.00
About LIN
Linde plc is a United Kingdom-based industrial gases and engineering company. The Company serves a variety of end markets, such as chemicals and energy, food and beverage, electronics, healthcare, manufacturing, metals, and mining. The Company’s industrial gases and technologies are used in countless applications, including production of clean hydrogen and carbon capture systems critical to the energy transition, life-saving medical oxygen and high-purity and specialty gases for electronics. It also delivers gas processing solutions to support customer expansion, efficiency improvements and emissions reductions. Its primary products in its industrial gases business are atmospheric gases and process gases. The Company also designs and builds equipment that produces industrial gases and offers customers a range of gas production and processing services, such as olefin plants, natural gas plants, air separation plants, hydrogen and synthesis gas plants and other types of plants.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Strong Performance: Linde reported Q4 2025 sales of $8.8 billion, a 6% year-over-year increase, with operating profit at $2.6 billion and a 29.5% margin, demonstrating robust financial results despite headwinds in traditional industrial markets.
- Shareholder Returns: The company returned over $7 billion to shareholders in 2025, with $1.4 billion in stock repurchases in Q4, reflecting disciplined capital management and a commitment to enhancing shareholder value.
- Record Project Backlog: Linde's project backlog reached a record $10 billion, including $0.5 billion allocated for rocket propellant investments, indicating strategic positioning in the rapidly growing aerospace market and future growth opportunities.
- Future Outlook: Management projects 2026 EPS between $17.40 and $17.90, representing a 6% to 9% increase from 2025, emphasizing continued focus on resource alignment and market recovery dynamics to ensure long-term shareholder value creation.
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- Rating Downgrade Impact: J.P. Morgan downgraded Linde from Overweight to Neutral with a $455 price target, anticipating flat performance in 2026 similar to last year's, indicating growth challenges ahead.
- Price Growth Stagnation: The analyst highlighted that Linde's average prices have remained flat for two consecutive quarters, primarily due to lower helium prices, which could negatively impact future profitability.
- Competitive Pricing Dynamics: Linde's competitor, Air Products, has also seen flat prices for three straight quarters, with the analyst suggesting that this pricing dynamic increases medium-term earnings risk, potentially affecting investor confidence.
- Trading Multiple Outlook: The analyst believes Linde's trading multiples are unlikely to expand until the company reports a more positive pricing dynamic, indicating that investors should monitor future pricing strategies to assess the company's profit potential.
See More
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- Linde Rating Downgrade: Following a 2.9% decline post-earnings on Thursday, Linde shares dropped another 1.7% on Friday after JPMorgan downgraded its rating to hold, although Jim Cramer maintained a buy rating and raised the price target to $510.
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- Revenue Growth: Linde's fourth-quarter revenue increased approximately 6% year-over-year to $8.76 billion, surpassing the consensus estimate of $8.64 billion, indicating effective pricing strategies despite no significant increase in base volume activity.
- Profitability Improvement: Adjusted earnings per share rose nearly 5% year-over-year to $4.20, exceeding the consensus estimate of $4.18, reflecting the company's ongoing efforts in cost control and productivity enhancement, which bolstered investor confidence.
- Strong Backlog: Linde ended the year with a record backlog of $10 billion, not including over $500 million in investments for rocket propellants, underscoring its leadership in the aerospace sector and potential benefits from growth in the space industry.
- Stock Buyback Program: During the stock's decline, Linde repurchased $1.4 billion in shares in the fourth quarter, bringing the total for the year to $4.6 billion, demonstrating the company's confidence in its value while providing returns to shareholders.
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- Earnings Highlights: Linde's Q4 non-GAAP EPS of $4.20 surpassed expectations by $0.02, indicating strong performance in the industrial gas sector and reinforcing its market leadership.
- Revenue Growth: The company reported Q4 revenue of $8.8 billion, exceeding market expectations by $150 million, which reflects robust performance amid global demand recovery and enhances investor confidence in future growth.
- Investment Dynamics: ClearBridge International Growth ADR Strategy exited Linde in Q4 2025, reallocating to Roche, which may affect Linde's market attention but also indicates rising investor interest in other biotech firms.
- Quant Rating: Seeking Alpha's quant rating on Linde highlights its competitiveness in the industry, suggesting that despite market fluctuations, Linde remains a quality long-term investment due to its stable financial performance and growth potential.
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