UBS maintains Chart Industries stock Buy rating, $225 target

Published 01/04/2025, 14:56
UBS maintains Chart Industries stock Buy rating, $225 target

On Tuesday, UBS reiterated its Buy rating on Chart Industries (NYSE:GTLS) shares with a steady price target of $225.00, well above the current trading price of $142.54. The company maintains a "GOOD" overall financial health score according to InvestingPro analysis, with a perfect Piotroski Score of 9. The firm’s analysts adjusted their first quarter 2025 EBITDA estimate for Chart Industries to $223 million compared to the consensus estimate of $233 million on the Street. This anticipated EBITDA reflects an increase of $11 million year-over-year but a decrease of $61 million quarter-over-quarter. With the stock currently trading below its Fair Value, InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of the company’s fundamentals.

The analysts highlighted that foreign exchange rates, which acted as a tailwind in the first quarter of 2024, are not expected to provide the same benefit in the first quarter of 2025. Sales are estimated to reach $995 million in the first quarter of 2025, a decline from $1,107 million in the fourth quarter of 2024 but an increase from $951 million in the first quarter of the previous year.

Chart Industries is projected to face a free cash flow (FCF) deficit of $85 million in the first quarter of 2025, which is an improvement from the $135 million deficit recorded in the first quarter of 2024, and a significant drop from the $261 million positive free cash flow in the fourth quarter of 2024. The company generated $382.2 million in levered free cash flow over the last twelve months, with a debt-to-equity ratio of 1.32 by the end of the fourth quarter of 2024.

The first quarter is traditionally the weakest for Chart Industries, but UBS analysts anticipate the company will resume its deleveraging process starting in the second quarter of 2025. They forecast a free cash flow of $168 million for the second quarter and a total of $400 million for the full year of 2025. The company has demonstrated strong growth with revenue increasing 24.1% over the last twelve months to $4.16 billion, supporting analysts’ positive outlook.

In other recent news, Chart Industries reported its fourth-quarter earnings for 2024, which fell short of expectations. The company announced earnings per share of $2.66, missing the forecasted $3.15, and revenue of $1.11 billion, below the anticipated $1.18 billion. Despite these setbacks, Chart Industries remains optimistic about its future, maintaining its 2025 growth outlook across all segments. Moody’s Ratings recently upgraded Chart Industries’ corporate family rating to Ba3 from B1, citing strong backlog and order growth, which is expected to support a 9% revenue growth in 2025. The company has also been selected by Blue Spruce Operating to supply a Nitrogen Rejection Unit and helium processing technology for the Dry Piney Helium and Carbon Sequestration Project in Wyoming. Additionally, Stifel analysts reiterated a Buy rating on Chart Industries, maintaining a price target of $231, highlighting the company’s strong order book and better-than-expected free cash flow. JPMorgan maintains a Neutral rating on the company, with a $194 price target, expecting significant cash flow increases driven by the Big LNG order from Woodside (OTC:WOPEY) Phase 1. These developments reflect Chart Industries’ ongoing efforts to strengthen its financial position and expand its market presence.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.