On Tuesday, Stifel analysts increased the price target for Chart Industries (NYSE:GTLS) shares to $231 from the previous $200, while maintaining a Buy rating on the stock. Currently trading at $194.02, the company has shown impressive momentum with a 32% gain over the past six months.
The revision follows Chart Industries' announcement of securing an order from Woodside (OTC:WOPEY) for process technology and equipment for the company's Louisiana LNG projects, previously known as Driftwood.
According to Stifel's analysts, the contract activity for Chart Industries is picking up after a slower 2024, which was largely affected by a pause from the White House on LNG orders. They anticipate that 2025 will be a significant year for the company in terms of LNG order activity.
The analysts noted the firm's momentum and considered the stock's valuation appealing, even after its recent price increase. InvestingPro data reveals the company achieved remarkable revenue growth of 46.41% in the last twelve months, with a perfect Piotroski Score of 9, indicating strong financial health.
Chart Industries' announcement of the new order from Woodside marks a positive development for the company. This order is expected to contribute to the company's growth and reflects the increasing demand for LNG process technology and equipment.
The analysts at Stifel expressed confidence in Chart Industries' future prospects, citing the new order as a sign of the company's capacity to secure significant contracts. They believe that the company is well-positioned to capitalize on the expected increase in LNG orders for the upcoming year.
Stifel's revised price target and sustained Buy rating suggest that Chart Industries' shares are a favorable option for investors, based on the firm's current performance and potential for future growth in the LNG sector. The analysts' outlook is backed by the recent order win and the anticipation of a robust year ahead for LNG order activity.
According to InvestingPro analysis, the stock appears slightly undervalued at current levels, with 10 additional exclusive ProTips available to subscribers, offering deeper insights into the company's financial health and growth prospects.
In other recent news, Chart Industries has been making significant strides in the energy sector. The company secured a substantial order from Bechtel for its Integrated Pre-Cooled Single Mixed Refrigerant (IPSMR®) liquefaction technology. This technology will be implemented in Phase 1 of the Louisiana LNG project, operated by Woodside Energy Group Ltd and managed by Bechtel Energy Inc. This development follows Chart Industries' impressive revenue growth of 46.41% over the last twelve months.
In addition to this, Chart Industries' Board of Directors approved a share repurchase program, authorizing the buyback of up to $250 million worth of its common stock. The company has also concluded agreements, known as Unwind Agreements, with Morgan Stanley (NYSE:MS) & Co. International plc, Bank of America, N.A., and JPMorgan Chase (NYSE:JPM) Bank to terminate warrant transactions related to its convertible notes.
Financially, Chart Industries reported a 22.4% increase in sales, reaching $1.06 billion, and a significant $200.7 million in net cash from operating activities. Orders also saw a substantial increase, totaling $1.17 billion, a 5.4% rise from the previous year, primarily driven by the energy and hydrogen sectors.
Stifel, Citi, and CL King have maintained their Buy ratings for Chart Industries, with price targets of $200, $190, and $168 respectively. These ratings reflect confidence in the company's financial performance and growth trajectory.
In terms of future projections, Chart Industries expects full-year 2024 sales to be between $4.2 billion and $4.3 billion, with an adjusted EBITDA expected to be approximately $1.015 billion to $1.045 billion. Looking ahead to 2025, the company anticipates sales to be between $4.65 billion and $4.85 billion, with adjusted EBITDA between $1.175 billion and $1.225 billion.
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