economy
An unusual derivative play off SpaceX’s IPO success: A maker of space gases
Rothschild & Co. Redburn sees industrial gas supplier Linde emerging as a potential beneficiary alongside SpaceX.
TL;DR
- Rothschild & Co. Redburn maintains a buy rating on Linde, with an increased price target.
- Linde is seen as a potential beneficiary of the expanding space transportation industry, alongside SpaceX.
- The company has a 60-year history of supplying NASA and has capital expenditures set to increase near SpaceX's Starbase.
- The industrial gas business model has a high barrier to entry due to the challenges of liquefying and distributing space propellant gases.
- The development and potential dominance of SpaceX's Starship could significantly increase demand for Linde's products.
- Linde's revenue per launch is projected to increase substantially by 2028.
- Linde's management is described as top-quartile, with a solid business foundation.