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Investing.com -- RBC Capital Markets began coverage of Air Products and Chemicals (NYSE:APD) and Linde (NYSE:LIN) with Outperform ratings, saying both industrial gas companies are well positioned to deliver steady earnings growth and improved returns.

Air Products was described as a turnaround story. RBC (TSX:RY) said a recent pullback in shares presents a buying opportunity.

With new leadership moving the company away from riskier growth projects and refocusing on its traditional industrial gas operations.

The bank sees potential for the stock to recover following a roughly 10% drop since March and set a price target of $355.

It expects most of the gains to come from better operating performance and investor confidence in the company’s simplified strategy.

Air Products plans to cut $2.5 billion in CapEx by 2030, scale back underperforming initiatives, and eliminate nearly 4,500 positions by 2028.

Linde has stuck to a proven formula of steady pricing gains and disciplined project spending.

Despite weaker industrial demand, the company has continued to grow profit margins and return capital to shareholders through buybacks and dividends.

RBC set a $576 price target on Linde, citing the company’s track record of stable growth and a pipeline of large-scale projects that are expected to add to earnings in the coming years.

The firm said both companies offer relative safety at a time of broader uncertainty in industrial markets, with Linde viewed as the more stable operator and Air Products offering more recovery potential.

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