Barclays lifts Chart Industries stock target to $171, maintains rating

Published 02/05/2025, 17:40
Barclays lifts Chart Industries stock target to $171, maintains rating

On Friday, Barclays (LON:BARC) updated its outlook on Chart Industries (NYSE:GTLS), increasing the firm’s price target on the stock to $171 from the previous $160, while keeping an Equalweight rating. The adjustment follows Chart Industries’ recent financial performance, which the research firm noted as a "clean quarter." With a market capitalization of $6.8 billion and impressive revenue growth of 24.1% in the last twelve months, the company also reaffirmed its full-year guidance, demonstrating resilience with minimal impact from tariffs.

In a statement, Barclays analysts highlighted the progress made by Chart Industries, suggesting that the company is gradually overcoming skepticism from investors. According to InvestingPro data, the company has achieved a perfect Piotroski Score of 9, indicating strong financial health. The analysts pointed out that Chart is steadily dispelling the negative assumptions that have previously surrounded the stock, which could lead to a reassessment of the company’s value in the market.[Get access to 10+ additional InvestingPro Tips and comprehensive financial analysis for Chart Industries and 1,400+ other stocks through InvestingPro]

Chart Industries has been recognized for its ability to maintain steady operations amidst challenges, with EBITDA reaching $929.9 million in the last twelve months. This performance, along with a healthy current ratio of 1.38, is a factor that Barclays believes could contribute to a shift in perception. The firm sees potential for Chart to be increasingly viewed as a solid industrial energy player, provided it continues to deliver on its business promises.

The analysts underscored the importance of ongoing strong performance for Chart Industries. They indicated that the company’s future re-rating, or adjustment in market valuation, would be dependent on its ability to consistently execute its strategies and meet its operational targets.

With the price target update, Barclays has expressed a measure of confidence in Chart Industries’ strategic direction and operational capabilities. The Equalweight rating suggests that the firm views the stock as adequately valued at the current levels, given the company’s performance and market conditions.

In other recent news, Chart Industries reported its Q1 2025 earnings, revealing a slight miss on both earnings per share (EPS) and revenue compared to analysts’ forecasts. The company posted an EPS of $1.86, below the expected $1.92, while revenue reached $1 billion, missing the forecasted $1.02 billion. Despite these misses, the stock experienced a notable pre-market increase, reflecting positive investor sentiment about the company’s strategic initiatives and future guidance. Citi analysts raised the price target for Chart Industries to $200, maintaining a Buy rating, citing the company’s robust first-quarter performance and strong order intake. Stifel also maintained a Buy rating with a price target of $214, highlighting the company’s ability to meet its targets amidst market volatility. TD Cowen, while slightly lowering its price target to $205, upheld a Buy rating, noting Chart Industries’ solid financial report and positive business outlook. The company’s forward-looking statements include expectations for continued order growth and a strong business outlook, contributing to analysts’ confidence. Additionally, Chart Industries is projected to have an improved free cash flow and decreased net leverage by the end of FY25.

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