On Monday, Piper Sandler adjusted its price target for Chart Industries (NYSE:NYSE:GTLS), a manufacturing company specializing in engineered equipment for industrial gas applications. The new price target is set at $160.00, up from the previous target of $151.00. The firm has decided to maintain a Neutral rating on the stock.
The revision of the price target by Piper Sandler comes with an unchanged multiple of 8.0 times the anticipated 2025 enterprise value to EBITDA ratio. The forecast is based on an expected EBITDA of $1.42 billion for the year 2025. Additionally, the analysis takes into account a net debt of $3.9 billion as of the first quarter of 2024 and 47 million fully diluted shares.
The increase in the price target to $160 from $151 reflects a more optimistic view of Chart Industries' expected EBITDA for the year 2025. Piper Sandler's stance remains neutral despite the adjustment, suggesting that the firm sees the stock as fairly valued at its current level.
Piper Sandler has identified several risks that could affect Chart Industries' performance. These include challenges related to integration and execution, the potential for multiple correction, and the resilience of natural gas within the broader energy transition. These factors are considered as part of the rationale behind the Neutral rating and the revised price target.
InvestingPro Insights
Amidst Piper Sandler's revised price target for Chart Industries, real-time data from InvestingPro provides further context for investors considering the stock's potential. With a significant market capitalization of $5.56 billion and a P/E ratio of 51.67, Chart Industries appears to be trading at a premium based on current earnings. Despite this, the company's robust revenue growth of over 110% in the last twelve months as of Q1 2024, coupled with an impressive EBITDA growth of 185.23% in the same period, indicates strong operational performance.
InvestingPro Tips highlight that Chart Industries is trading at a low PEG ratio of 0.26, suggesting that its earnings growth rate is outpacing its P/E ratio, which could be attractive to growth-oriented investors. Additionally, the stock has experienced a strong return over the last three months, with a total price return of 31.01%, reflecting positive investor sentiment. It's worth noting that Chart Industries does not pay a dividend, which could be a consideration for income-focused investors.
For more InvestingPro Tips related to Chart Industries, including an analysis of the company's debt burden and sales growth expectations, visit Investing.com/pro/GTLS. There are 11 additional tips available on InvestingPro, which can be accessed with an exclusive 10% discount on a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
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