Bernstein's recent analysis concludes that the industrial-gas sector may enter a multi-year period of stronger-than-expected expansion driven by the rise in commercial-space launches. The research house expects higher volumes of space-related activity to support earnings across the group through the latter half of the decade.
On Air Liquide, Bernstein reiterated an Outperform rating. The broker noted that Air Liquide has comparatively less direct exposure to the U.S. commercial-space market than some peers, but emphasised the company's capability to benefit from growing global launch volumes. Key to the view is Air Liquide's deep technical expertise, particularly in producing high-purity oxygen and hydrogen, which Bernstein says provides a pathway to capture incremental space-related demand as launch volumes increase. Bernstein left its price target for Air Liquide unchanged while observing that accelerating demand from the space sector could provide meaningful tailwinds in the second half of the decade.
Linde plc was highlighted as Bernstein's top-conviction pick within the industrial-gas cohort. The broker raised its price target for Linde on the expectation that space-related gas demand will scale materially faster than previously modelled. Bernstein pointed out that Linde already supplies key high-purity gases to major U.S. launch programmes and is well positioned to benefit as SpaceX's heavy-lift Starship ramps up. With space and electronics together seen as representing a large share of future growth, the broker argued Linde could outperform even in scenarios where other industrial end-markets weaken.
Bernstein also maintained an Outperform rating on Air Products and Chemicals and increased its price target for the company. The broker said its confidence has grown around Air Products' exposure to high-purity hydrogen and nitrogen used in evolving launch systems. While space-related sales currently account for a small portion of group revenue, Bernstein believes that rapid launch growth and a favourable pricing environment for ultra-high-purity gases support a stronger long-term earnings trajectory. The research house suggested that space demand could help "underwrite" consensus growth expectations into the late decade.
The brokerage's conclusions rest on the premise that commercial-space launch activity will expand substantially, translating into higher demand for ultra-high-purity industrial gases. Each firm in the group holds differing degrees of exposure to the U.S. market and to specific launch programmes, which shapes Bernstein's relative views and target adjustments.
Disclaimer: This article summarizes analyst views attributed to Bernstein as presented above.