An analyst note from Rothschild & Co Redburn has identified Linde as a key beneficiary of the expanding space economy, specifically citing its dominant position in rocket propellants and mission-critical launch gases. Analyst Tony Jones reiterated a "Buy" rating on Linde and raised the 12-month price target to $560 from $550, according to a note published Wednesday.
Jones's analysis comes ahead of a potential SpaceX IPO and as the company's Starship launch cadence gains momentum. The note projects the broader space economy will double by 2035, driving sustained demand for the industrial gases Linde supplies.
The firm has built a deep and defensible position in the supply chain for spaceflight, providing everything from liquid oxygen and hydrogen for propellants to helium and nitrogen for ground operations. This infrastructure advantage creates a high barrier to entry for competitors seeking to serve the growing launch market.
While the space economy is poised for significant expansion, the timeline for a SpaceX IPO remains uncertain, and the valuation of space-related assets carries inherent volatility. Linde's core industrial gases business also faces headwinds from global economic cycles and energy costs, which could temper the upside from its space segment.
A counterargument exists that rocket propellant demand, while growing, represents a small fraction of Linde's overall revenue, and investors may be overestimating the near-term impact of the space economy on the company's financials. The analyst's thesis is driven by a long-term structural trend rather than immediate earnings catalysts.