Citigroup Upgrades Linde (LIN) to Buy, Raises Price Target

Linde plc (NASDAQ:LIN) is one of the 11 Best Foreign Stocks to Buy According to Hedge Funds. On June 30, Citi upgraded its rating on Linde plc (NASDAQ:LIN) from “Neutral” to “Buy” and raised its price target from $500 to $535. The research firm highlighted the company’s strong execution on price and productivity, along with a large backlog of clean-energy projects, as reasons to expect continued margin growth even if demand remains patchy.

Citi analysts forecast that Linde plc’s (NASDAQ:LIN) EBITDA margin will exceed 40% by 2026 and they raised their EBITDA estimates to $13.3 billion for 2025 and $14.5 billion for 2026.

In the March quarter, Linde plc’s (NASDAQ:LIN) operating margin improved by about 120 basis points year-over-year even with flat sales volumes. Citi expects this trend to continue as the company focuses on price increases, cost control, and leveraging its high-quality project backlog.

The company’s management has visibility on $8 to $10 billion in capital spending related to energy‑transition projects like low‑carbon hydrogen and ammonia.

The research firm now prefers Linde plc (NASDAQ:LIN) over its rival Air Products and Chemicals, which the firm views as having greater risk due to capital-intensive megaprojects and offtake agreements.

Citi values Linde plc (NASDAQ:LIN) at about 19 times its forecasted fiscal 2026 EBITDA. The analysts believe that the premium is justified because of the company’s project discipline, strong balance sheet, and possible early‑cycle gains when manufacturing activity rebounds.

Linde plc (NASDAQ:LIN) is a leading global industrial gases and engineering company that is headquartered in Woking, United Kingdom, and registered in Ireland. It serves a range of end markets like chemicals and energy, food and beverages, electronics, healthcare, manufacturing, metals, and mining.

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Disclosure: None. This article is originally published at Insider Monkey.