Fundamental Analysis: LINDE PLC (#LI)

Linde plc is an American-German chemical company. It is the largest industrial gas company by market share and revenue.


💡 Chemical company Linde #LIN following the company's third quarter financials, demonstrates good potential, also noting that the company's strong market position will provide long-term growth.


⚡️ Linde reports for the third quarter:

• Earnings per share (EPS) was $ 2.15, above the consensus of $ 1.95.

• Revenue was $ 6.86 billion, which is also better than expected $ 6.68 billion.

• The profitability was 22.1%, an increase of 230 bp. in relation to the previous year and by 140 bp. in relation to the previous quarter, which is associated with the recovery of the final sales sectors, higher prices in the regions of the company's presence and increased productivity.

• Free cash flow amounted to $ 1.1 billion - an increase of 20% compared to last year.

• Management raised its EPS forecast to $ 8.05-8.10 from $ 7.60-7.80


⚡️ Growth factors:

• UBP has confidence in the company's long-term prospects as Linde's merger with Praxair has created the world's largest industrial gas producer. A huge portfolio of assets in different geographies will be the main source of EPS growth at 17-19% levels and significant cash flows.

• The merger with Praxair will also create synergies in costs, economies of scale and efficiency gains.


💎 We hold Linde #LIN shares in the portfolio, we believe that the company will be one of the beneficiaries of the asset rotation of investors in value shares.


🎯 Target price from Deutsche Bank - $ 300, upside potential + 15%.






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