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Chart Industries: Balancing Growth Opportunities with Financial and Operational Risks Amidst Macroeconomic Uncertainties

Chart Industries: Balancing Growth Opportunities with Financial and Operational Risks Amidst Macroeconomic Uncertainties

J.P. Morgan analyst Arun Jayaram reiterated a Hold rating on Chart Industries (GTLSResearch Report) today and set a price target of $194.00.

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Arun Jayaram has given his Hold rating due to a combination of factors impacting Chart Industries. The company is expected to show sequential growth in revenue, EBITDA, and cash flow for 2Q25, aligning with historical trends and company guidance. However, the inherent seasonality of the business and macroeconomic uncertainties pose challenges, leading to a cautious outlook. Despite these headwinds, Chart Industries anticipates strong order growth, particularly in the LNG sector, which could drive future performance.
Additionally, the recent merger with Flowserve is expected to enhance earnings stability and diversify market exposure. The merger aims to achieve significant cost and revenue synergies, although the integration process and high leverage remain concerns. The company’s strategic focus on expanding its aftermarket services and achieving cost synergies is promising, yet the current balance sheet leverage and inconsistent operational performance justify a Neutral stance. Therefore, the Hold rating reflects a balanced view of potential growth opportunities against existing financial and operational risks.

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