ubs maintains buy rating on chart industries stock following merger

On Thursday, UBS analysts maintained their Buy rating on Chart Industries (NYSE:GTLS) stock, with a price target of $225.00, well above the current trading price of $146.70. The stock, which has shown significant volatility recently with a 8% decline over the past week, maintains strong fundamentals with a perfect Piotroski Score of 9. This decision comes after Chart Industries announced a definitive agreement to merge with Flowserve Corporation (NYSE:FLS) in an all-stock merger of equals.

The merger is expected to create a combined company with an enterprise value of approximately $19 billion, based on the exchange ratio and the closing share prices for both companies as of Monday. According to InvestingPro analysis, Chart Industries appears undervalued at current levels, with the company maintaining healthy financials and an 11.7% revenue growth in the last twelve months. Upon completion of the merger, Chart Industries shareholders will own approximately 53.5% of the combined entity on a fully diluted basis.

Jill Evanko is set to become the Chair of the Board of Directors for the newly formed company, while Scott Rowe will take on the role of Chief Executive Officer. The merger is anticipated to be finalized in the fourth quarter of 2025.

UBS analysts reiterated their positive outlook for Chart Industries, citing the strategic alignment and potential growth opportunities resulting from the merger. The analysts believe the combined company will be well-positioned to leverage synergies and enhance shareholder value.

In other recent news, Chart Industries announced an all-stock merger with Flowserve, creating an entity valued at approximately $19 billion. This merger is expected to enhance earnings stability by diversifying end-market exposure and increasing after-market services to 42% of revenue. The combined entity projects $1.9 billion in EBITDA and anticipates $300 million in annual cost synergies within three years. JPMorgan and Goldman Sachs have maintained Neutral ratings on Chart Industries, with price targets of $194 and $180, respectively. Meanwhile, BTIG analysts reaffirmed a Buy rating with a $210 price target, expressing confidence in the company’s strategic direction despite immediate market reactions. S&P Global Ratings revised Flowserve’s outlook to positive, citing improved competitive positioning and profitability post-merger. The merger is anticipated to close in the fourth quarter of 2025, with Chart Industries shareholders receiving 3.165 shares of Flowserve per GTLS share. Additionally, Chart Industries held its annual stockholders’ meeting, where all director nominees were elected, and executive compensation was approved.

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