S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Wednesday, BTIG analysts reaffirmed their Buy rating and maintained a $210 price target on Chart Industries (NYSE: NYSE:GTLS). This decision follows the company’s announcement of plans to merge with Flowserve (NYSE: FLS) in an all-stock transaction. Chart Industries shares fell approximately 7% after the announcement, trading at $154.86. InvestingPro analysis suggests the stock is currently undervalued, with a perfect Piotroski Score of 9 indicating strong financial health.
The merger is anticipated to finalize in the fourth quarter of 2025. Under the terms, Chart Industries shareholders will receive 3.165 shares of Flowserve, resulting in Chart Industries owning nearly 54% of the combined company. The merger aims to create a strong presence in aftermarket services, which are expected to make up about 42% of the new entity, compared to around 33% for Chart Industries alone. With a market capitalization of $6.96 billion and revenue growth of 11.65% in the last twelve months, Chart Industries brings significant momentum to this merger. Get deeper insights into Chart Industries’ financial health and growth prospects with a InvestingPro subscription.
Despite the potential benefits, concerns have surfaced regarding the dilution of Chart Industries’ product mix. Liquefied natural gas (LNG) will account for only about 9% of the combined company’s operations. This shift marks a significant move away from Chart Industries’ previous focus on natural gas-related equipment, such as compression and storage tanks. According to InvestingPro data, the company maintains strong fundamentals with liquid assets exceeding short-term obligations and a healthy current ratio of 1.51.
The merger comes nearly two years after Chart Industries expanded its service offerings through the acquisition of Howden. This strategic pivot emphasizes a focus on more resilient aftermarket revenues, moving away from the natural gas sector.
BTIG analysts remain optimistic about Chart Industries’ future, underscoring their confidence in the company’s strategic direction and potential for long-term growth despite the immediate market reaction.
In other recent news, Flowserve Corp (NYSE:FLS). has received a positive outlook revision from S&P Global Ratings following its proposed all-stock merger with Chart Industries. The merger is expected to enhance Flowserve’s competitive position, profitability, and market presence, though the integration process poses some risks. S&P noted that the company’s adjusted debt to EBITDA is anticipated to stay below 3x, which could lead to a ratings upgrade if the merger significantly strengthens Flowserve’s position. Meanwhile, Chart Industries held its annual stockholders’ meeting, where all director nominees were elected, and the appointment of Deloitte & Touche LLP as the independent auditor was ratified. The executive compensation plan also received stockholder approval, reflecting support for the company’s leadership and governance.
In analyst updates, Goldman Sachs maintained a Neutral rating on Chart Industries, projecting growth in its various segments without factoring in potential new orders. Barclays (LON:BARC) increased its price target for Chart Industries to $171, maintaining an Equalweight rating, and highlighted the company’s steady operations amidst challenges. TD Cowen adjusted its price target for Chart Industries to $205, keeping a Buy rating, citing strong orders and a positive outlook despite macroeconomic concerns. These developments collectively indicate a cautious yet optimistic view of Chart Industries’ future performance in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.