Linde's (LIN) exposure to the fuel for space travel is currently limited, but it has a "credible" path to boost the business, UBS said in a Wednesday note.

"We think the opportunity in fuel for space travel could propel the growth narrative for Linde," the report said.

UBS analysts said Space exposure for Linde is currently still small at 1% to 2% of sales.

"However there is a credible path, we think, to seeing this increase 5-8x over the next 5 years and potentially being much larger," they said.

The note said the next stage of growth for Linde is most visible with SpaceX, and their ambition to drive many more launches of the larger Starship. It said more launches will need more fuel.

"Space will likely be the largest merchant end market for LIN gas

sales in the next few years," the report said.

UBS has a buy rating on the stock and a $500 price target.

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