Shares of Linde plc advanced 1.8% on Monday, closing at $456.34, with minimal movement in after-hours trading. The industrial gases supplier is often viewed as a barometer for manufacturing activity due to its long-term contracts across sectors like chemicals, healthcare, and heavy industry.
Analyst Actions Mixed
Equity research firms issued divergent updates on the stock. BMO Capital Markets increased its price objective to $507 from $501, reaffirming an outperform rating. Redburn adopted a more optimistic view, raising its target to $550 from $530 and maintaining a buy recommendation. Conversely, DZ Bank reduced its stance to neutral.
The broader market provided a supportive backdrop, with the S&P 500 index climbing 0.47%. Shares of competitor Air Products also moved higher, gaining 1.15% during the session.
Financial Forecasts and Backlog Strength
Last week, Linde provided financial guidance for 2026, forecasting adjusted earnings per share between $17.40 and $17.90. The company also outlined capital expenditure plans ranging from $5.0 billion to $5.5 billion. CEO Sanjiv Lamba highlighted that operating profit, cash flow, and project backlog each exceed $10 billion.
Executives emphasized the strength of their project pipeline, noting the total backlog has reached a historic $10 billion. Approximately two-thirds of this backlog is linked to clean energy initiatives, underscoring the company's strategic focus on sustainability-driven demand.
Macroeconomic Data and Upcoming Events
Investors are monitoring upcoming U.S. economic indicators, including the January employment report and Consumer Price Index data, which could influence market sentiment and industrial sector valuations.
Linde is scheduled to present at Citi's Global Industrial Tech and Mobility Conference on February 17. Market participants will likely seek updates on the conversion of the backlog into revenue, new clean energy orders, and the company's capital return strategy.
