Linde downgraded to Neutral on valuation at Citi

Citi downgraded Linde to Neutral from Buy with a price target of $500, up from $475. The analyst cites valuation for the downgrade with the shares up 11% year-to-date and over 28% on a 12-month basis. The firm has no concerns with Linde’s “excellence” in pricing and productivity and long-term earnings trajectory, but believes current valuations are baking in consistent beat and raises in 2024. Citi sees risk of underperformance into the next couple of quarters, making Linde’s risk/reward “less compelling.”