U.S. stocks edge higher; solid earnings season continues
On Thursday, Stifel analysts reiterated their Buy rating on Chart Industries (NYSE:GTLS) with a steady price target of $214.00, significantly above the current trading price of $57.84. According to InvestingPro data, the company maintains a perfect Piotroski Score of 9, indicating strong financial strength. The firm’s analysis highlighted Chart’s performance amidst market volatility, noting the company’s ability to meet its first-quarter 2025 targets and its robust order activity. Chart Industries, recognized for its work in the manufacture of highly engineered equipment servicing multiple applications in the Energy and Industrial Gas markets, has shown resilience despite previous challenges in meeting guidance.
The company reported results that aligned with expectations for the first quarter of 2025, demonstrating strong ordering activity, particularly in the Specialty and Aftermarket sectors. Chart Industries has affirmed its guidance, which suggests anticipated sales growth of about 12%, EBITDA growth of 18%, and a significant 45% growth in EPS. This outlook implies that an acceleration in performance is expected as the year progresses. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with particularly strong metrics in growth and profitability.
The analysts underscored Chart’s substantial backlog and expanding aftermarket business as key factors insulating the company’s growth. Additionally, concerns regarding tariff exposure were less severe than anticipated, with the company facing only $50 million in tariffs, which they have strategies to mitigate further.
Despite the macroeconomic risks that persist in the global markets, Stifel’s analysis conveys a positive outlook for Chart Industries. The firm emphasized that Chart Industries’ shares continue to trade below those of its peers, despite having, in their view, a stronger potential for growth. Trading at a P/E ratio of 35.89 with a market capitalization of $6.07 billion, InvestingPro analysis indicates the stock is currently undervalued. Discover more insights and 8 additional ProTips for Chart Industries with an InvestingPro subscription, including exclusive access to comprehensive Pro Research Reports covering 1,400+ top stocks.
In other recent news, Chart Industries reported its Q1 2025 earnings, which fell short of analysts’ expectations. The company posted an earnings per share (EPS) of $1.86, missing the forecast of $1.92, and reported revenue of $1 billion, below the anticipated $1.02 billion. Despite these misses, Chart Industries experienced a 38.8% year-over-year growth in EPS, indicating ongoing operational improvements. Orders increased by 17.3% year-over-year, driven by strong demand across various sectors, including space exploration and marine industries. The company maintained a gross margin of 33.9% for the fourth consecutive quarter. Looking forward, Chart Industries projects full-year 2025 sales between $4.65 billion and $4.85 billion, with an adjusted EBITDA forecast ranging from $1.175 billion to $1.225 billion. CEO Jill Ivankoe highlighted the company’s strategic positioning in high-growth sectors such as data centers and LNG. Additionally, the company is addressing tariff impacts through regional sourcing and pricing strategies.
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