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On Monday, Stifel analysts reiterated their Buy rating on Chart Industries (NYSE:GTLS) shares, maintaining a price target of $231.00. The stance comes after a close examination of the company’s recent performance and future prospects. According to InvestingPro data, Chart Industries currently trades at $184.69, with analyst targets ranging from $145 to $275, suggesting potential upside from current levels.
The analysts highlighted several positive aspects of Chart Industries’ operations. Notably, the company’s orderbook and book-to-bill ratio were strong, a trend that extends beyond the significant Woodside (OTC:WOPEY) Big LNG order. Additionally, Chart Industries reported better-than-expected free cash flow, aided by improvements in working capital. The company’s operational excellence is reflected in its perfect Piotroski Score of 9, as reported by InvestingPro, while maintaining impressive revenue growth of 24.1% over the last twelve months. Early indications suggest that the order flow in the first quarter is continuing to progress well.
Despite these positives, the analysts also pointed out an area of concern: Chart Industries once again fell short of its own guidance for the quarter and the full year. However, the company’s guidance remains unchanged, suggesting an ambitious 14% revenue growth. Stifel’s analysts believe this target is achievable, especially considering the robustness of the order backlog and the company’s strong market position, evidenced by its $6.59 billion market capitalization and $917.4 million in EBITDA. For deeper insights into Chart Industries’ financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
Looking ahead, Stifel’s analysis suggests that Chart Industries is outpacing its industrial peers in growth while trading at a lower multiple. The analysts expressed optimism that as Chart Industries improves its predictability, its valuation multiples will align more closely with its peers, potentially leading to significant gains from the current share prices. This potential is further supported by the stock’s impressive 67.08% return over the past six months.
In other recent news, Chart Industries reported its fourth-quarter 2024 earnings, which fell short of analysts’ expectations. The company announced an earnings per share (EPS) of $2.66, missing the anticipated $3.15, while quarterly revenue reached $1.11 billion, below the projected $1.18 billion. Despite these shortfalls, Chart Industries experienced a 10.8% sales increase in Q4 2024, excluding foreign exchange impacts, contributing to a full-year sales total of $4.16 billion, a 17.5% organic increase. The company’s earnings report highlighted strong growth in LNG, hydrogen, and carbon capture markets, and it reiterated a positive growth outlook for 2025. Chart Industries has secured various orders, including a significant LNG order from Woodside, Louisiana, and has received commitments for future projects, although these are not yet included in the backlog. The company also discussed its strategic focus on expanding its manufacturing capacity and improving operational efficiency to support future growth. Chart Industries’ CEO, Jill Evankov, emphasized the company’s readiness to capitalize on global LNG demand and highlighted the potential for increased activity in the nitrogen rejection unit market.
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