Following a UBS downgrade of Linde to a hold-equivalent rating from buy, Jim Cramer’s Charitable Trust is selling 25 shares of Linde at roughly $465.62 each, reducing its ownership to 165 shares. Despite the downgrade, UBS raised its price target for Linde to $510 per share, but noted that the stock is already trading at around 30 times forward earnings, historically high for the company. The analyst’s concern is that Linde’s best-in-class execution and expanding total addressable market from energy transition projects are already priced into the stock, and that these projects may take a few more years to significantly impact earnings. Additionally, UBS sees a lack of near-term catalysts to drive Linde’s multiple even higher.
In response to the UBS downgrade, Jim Cramer’s Charitable Trust is taking profits on its Linde investment, locking in an average gain of roughly 74% on the shares purchased in 2021. The Trust last trimmed its position in Linde on June 16 of the previous year, at $375 per share. Since then, Linde shares have rallied about 25%, outperforming the S&P 500 which has seen an approximately 18% gain. The Trust is also raising its price target for Linde to $500 from $440, reflecting where it may trim next. As a subscriber to the CNBC Investing Club, members receive trade alerts before Jim makes a trade, and there are specific waiting periods before Jim can buy or sell a stock in his charitable trust’s portfolio after discussing it on CNBC TV.
It is important to note that the information provided by the CNBC Investing Club with Jim Cramer is subject to terms and conditions, a privacy policy, and a disclaimer. There is no fiduciary obligation or duty created by receiving information from the investing club, and no specific outcome or profit is guaranteed. Subscribers should be aware of the risks involved in investing and make their own decisions based on the information provided. By selling 25 shares of Linde, Jim Cramer’s Charitable Trust is adjusting its portfolio to manage risk and take advantage of profits. The Trust is reacting to the UBS downgrade by recognizing the gains made on the Linde investment and considering future trimming of the position as well.
Overall, the UBS downgrade of Linde has prompted Jim Cramer’s Charitable Trust to sell 25 shares of the stock and take profits, while also raising its price target. The Trust is focused on managing risk and maximizing returns for its portfolio, adjusting its positions based on market conditions and analyst recommendations. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts and information to help guide their own investment decisions, with the understanding that no specific outcome or profit is guaranteed. By remaining vigilant and responsive to market changes, investors can adapt their strategies to potentially achieve their financial goals.
