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On Wednesday, Raymond (NSE:RYMD) James made an adjustment to Chart Industries ’ (NYSE:GTLS) financial outlook, lowering the price target from $215.00 to $200.00, while maintaining a Strong Buy rating on the company’s shares. The $4.33 billion market cap company, which according to InvestingPro analysis is currently undervalued, has seen its stock decline 36.56% year-to-date despite maintaining strong fundamentals, including a perfect Piotroski Score of 9. The firm’s analyst, Pavel Molchanov, cited significant trade and tariff uncertainties impacting the stock but noted that the demand environment remains relatively favorable, pointing to sectors such as LNG, space exploration, and power/data centers.
Despite the downward revision in the price target, Molchanov emphasized Chart Industries’ potential for growth, balance sheet improvement, and shareholder returns. With the first quarter of 2025 earnings report approaching on May 1, the analyst reiterated a Strong Buy rating, adjusting the earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA) forecasts for seasonal effects. The company has demonstrated strong operational performance with revenue growth of 24.1% and last twelve months EBITDA of $929.9 million. InvestingPro subscribers can access 8 additional key insights about Chart Industries’ financial health and growth prospects.
For the first quarter of 2025, sales are expected to decline seasonally, with estimates just shy of $1 billion, which would result in an EBITDA of $237 million and an EPS of $1.85, aligning with consensus figures. While the first quarter results will be indicative of the company’s trajectory, the outlook for the second quarter and beyond will be scrutinized for potential disruptions due to tariffs and trade changes.
Last month, management indicated that Chart Industries’ supply chain and manufacturing capabilities, including those in the United States, could mitigate some of the uncertainty. In light of this and other factors, Molchanov has updated the full year 2025 EPS estimate to $12.10 with an EBITDA forecast of $1.18 billion, both at the lower end of the company’s guidance. For the fiscal year 2026, the EPS estimate has been reduced to $14.50 and EBITDA to $1.285 billion.
Looking further ahead, the analyst has introduced estimates for 2027, projecting continued growth with an EBITDA of $1.33 billion and an EPS of $16.00, although these figures are below what is considered the company’s long-term growth potential. Trading at a P/E ratio of 35.89, the stock currently has a consensus "Strong Buy" recommendation from analysts, with targets ranging from $160 to $250. Molchanov concluded by stating that despite solid fundamentals in many subsectors, the outlook could shift rapidly due to potential trade disruptions, and management commentary on this topic will be closely monitored. For detailed analysis and comprehensive valuation metrics, investors can access Chart Industries’ full Pro Research Report, available exclusively on InvestingPro.
In other recent news, Chart Industries has been the focus of several significant developments. UBS has maintained its Buy rating on Chart Industries, setting a price target of $225, while analysts adjusted their EBITDA estimate for the first quarter of 2025 to $223 million, reflecting a year-over-year increase but a quarter-over-quarter decrease. Meanwhile, JPMorgan reiterated a Neutral rating with a $194 price target, anticipating a rise in cash flow in the second half of 2025 due to a significant LNG order from Woodside (OTC:WOPEY) Phase 1. In a separate development, Moody’s upgraded Chart Industries’ ratings, elevating its corporate family rating to Ba3 and maintaining a positive outlook, citing strong backlog and order growth. Chart Industries has also been selected to supply technology for the Dry Piney Helium and Carbon Sequestration Project in Wyoming, which is expected to produce significant volumes of helium and natural gas. Stifel analysts have identified Chart Industries as well-positioned to benefit from favorable LNG market dynamics, highlighting its potential for stock re-rating. Additionally, Chart Industries continues to focus on reducing its debt, with plans to refrain from substantial cash acquisitions or buybacks until achieving a leverage ratio below 2.5x. These developments illustrate Chart Industries’ active engagement in expanding its market presence and enhancing its financial standing.
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