Linde's Annual Volume Growth Could Rise on Space Launch Market Growth, UBS Says
Linde's (LIN) annual volume growth could see a 30 to 70 basis-point boost driven by the growing space launch market, UBS said in a Monday research note.Linde had implied that commercial space sales could surpass over $1 billion by 2030, and it would start breaking out commercial space and aero growth separately when the combined units reach 5% of company sales, which would require sales to start from a lower base or the sales price or shipping costs decline as volumes grow, analysts wrote.Keeping launch cadence estimates unchanged and modelling lower starting sales point of $150 million, the brokerage said it estimated $1.3 billion in space propellant sales by 2030.Assuming higher starting sales and gradually declining shipping costs, the sales impact could vary while the earnings growth impact on the company remains unchanged, UBS said.The brokerage said it reiterated its buy rating on the stock and price target of $600 per share.Price: $514.46, Change: $-7.02, Percent Change: -1.35%