JPMorgan Raises Linde Price Target to $525 on Tight Helium Supply
The Strait of Hormuz disruption halted one-third of global helium production, pushing spot prices up by about 50%. Linde shares rose after JPMorgan upgraded the stock to Overweight and lifted its price target from $455 to $525 on expectations of tighter helium markets.
1. Strait of Hormuz Disruption
The shutdown of a major energy hub in the Strait of Hormuz has halted production of roughly one-third of the global helium supply, raising concerns over supply constraints for industries from MRI to chip fabrication.
2. Helium Market Impact
Helium spot prices have surged by around 50% while existing long-term contracts remain unaffected in the short term; however, shipping delays and reserve depletion could spark a tangible deficit if the disruption extends for months.
3. Linde Upgrade Response
JPMorgan upgraded Linde to Overweight and raised its price target from $455 to $525, citing a globally tightened helium supply and higher commodity prices, which drove Linde shares higher in premarket trading.