Goldman Sachs maintains Chart Industries stock Neutral rating

Published 28/05/2025, 22:36
Goldman Sachs maintains Chart Industries stock Neutral rating

Wednesday, Goldman Sachs reiterated a Neutral rating on Chart Industries (NYSE:GTLS) with a steady price target of $180.00, while InvestingPro analysis indicates the stock is currently trading below its Fair Value. The company maintains a perfect Piotroski Score of 9, suggesting strong financial health. The firm’s analyst, Ati Modak, provided insights into the company’s future, focusing on various segments’ growth rates without factoring in potential new orders for LNG projects or data centers that have yet to be announced.

Modak highlighted that Goldman Sachs projects a compound annual growth rate (CAGR) of approximately 3% for Chart Industries’ Heat Transfer Systems (HTS) segment revenue from 2025 to 2027, slightly higher than the FactSet consensus of around 2%. With current revenue growth at 11.7% and a strong gross profit margin of 33.9%, the company shows robust operational performance. This forecast excludes the possibility of new LNG or data center orders. In contrast, the Repair, Service, and Leasing (RSL) segment is expected to grow at a CAGR of about 6% during the same period, which is slightly below the 7% consensus.

Specialty Products, which includes hydrogen and carbon capture, utilization, and storage (CCUS), is anticipated to grow at a CAGR of approximately 7% between 2025 and 2027, with hydrogen growth projected at about 8% CAGR through 2030. This estimate is in line with the lower end of the company’s analyst day expectation of 7-10% CAGR for hydrogen. For CCUS and Water, which are assumed to constitute roughly 10-12% of the segment’s revenue, growth is estimated at around 12% CAGR through 2030, slightly below the analyst day expectation of about 14% CAGR.

The key areas of debate for Chart Industries, according to Modak, include the potential for LNG orders, the growth trajectory of the RSL segment, possible data center cooling orders, and the growth rate of the Specialty Products segment. These factors are critical in assessing the company’s performance and future growth potential. InvestingPro subscribers can access 12 additional investment tips and a comprehensive Pro Research Report, providing deeper insights into Chart Industries’ financial health, which currently rates as "GOOD" with an overall score of 2.83 out of 5.

In other recent news, Chart Industries has been the focus of several analyst updates and company developments. Barclays (LON:BARC) raised its price target for Chart Industries to $171, maintaining an Equalweight rating, following what it described as a "clean quarter" and reaffirmation of the company’s full-year guidance. Meanwhile, TD Cowen adjusted its price target slightly down to $205 but retained a Buy rating, noting the company’s robust orders and positive outlook despite minimal tariff disruptions. Citi also increased its price target for Chart Industries to $200, citing strong first-quarter performance and an improved free cash flow forecast for FY25. Stifel reiterated a Buy rating with a target of $214, highlighting the company’s resilience and strong order activity.

Additionally, Chart Industries recently held its 2025 annual meeting of stockholders, where all eight director nominees were elected, and Deloitte & Touche LLP was ratified as the independent auditor for the fiscal year. The stockholders also approved the company’s executive compensation plan, reflecting strong support for the company’s governance. These developments demonstrate ongoing confidence in Chart Industries’ strategic direction and operational capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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