Linde plc shares enter the new trading week under pressure, closing Friday's session down 2.53% at $448.07. The decline follows a rating downgrade from JPMorgan, which moved the stock to Neutral from Overweight, maintaining a $455 price target.
Valuation and Pricing in Focus
JPMorgan's downgrade highlighted concerns over valuation and what the bank described as pricing pressure. The analyst note pointed out that Linde's consolidated sequential prices have been flat for two consecutive quarters, a trend potentially linked to lower helium prices. The bank suggested the stock's valuation multiple could remain constrained until pricing shows improvement.
This comes despite Linde reporting fourth-quarter results that exceeded expectations. The industrial gases giant provided 2026 adjusted EPS guidance of $17.40 to $17.90, with first-quarter adjusted EPS projected between $4.20 and $4.30. CEO Sanjiv Lamba noted that 2025 operating profit, cash flow, and backlog each surpassed $10 billion, with 2026 capital spending forecast at $5.0 to $5.5 billion.
Diverging Wall Street Views
Other financial institutions maintained more optimistic stances following the earnings report. UBS kept a Buy rating and raised its price target to $550, while Morgan Stanley reiterated its Overweight rating and increased its target to $530. These firms cited project start-ups and productivity gains as potential drivers for growth in 2026.
The debate centers on whether Linde, often viewed as a steady compounder in the chemicals sector, can continue to raise prices without sacrificing volume. As the world's largest supplier of oxygen, nitrogen, and hydrogen to industrial and medical customers, its performance is frequently seen as an indicator of broader industrial activity.
Macro Events and Company Appearances Ahead
The near-term calendar presents several catalysts. Linde is scheduled to present at Citi's 2026 Global Industrial Tech and Mobility Conference on February 17 and Barclays' 43rd Annual Industrial Select Conference on February 18.
Broader economic data may influence trading earlier in the week. The U.S. January employment report is due February 11, followed by January Consumer Price Index data on February 13. These releases could shift interest rate expectations and sentiment toward industrial stocks.
Friday's drop occurred despite a strong rally in the broader market, where the S&P 500 gained 1.97% and the Dow Jones Industrial Average jumped 2.47%. Peer company Air Products showed little change during the session.
