Linde plc : Energy transition capex to hit FCF & adj. EPS growth, rating downgraded to Underperform (vs Outperform) & relative preference for Air Liquide vs Linde

>SBB down 63% y-o-y in FY23, adj. EPS growth only mid-single digit (CAGR 22-25e) - We expect additional growth opportunities to be fuelled by the IRA and related energy transition projects to weigh on Linde’s SBB capability and respective adj. EPS growth in the mid-term (adj. EPS growth: 7.5% CAGR 22-25e vs. 18.7% over last 3-yrs.). We expect Linde to have US$ 2.2bn OCF left (after maintenance & growth capex and dividends) to buy back ~6.2m shares in FY 23 (average pr...