Johnson Rice Downgrades Chart Industries to Hold from Buy with PT $210.

Johnson Rice Downgrades Chart Industries to Hold from Buy with PT $210.

Johnson Rice, a prominent investment research firm, has downgraded Chart Industries, Inc. (GTLS) to a "Hold" rating, maintaining its price target at $210 per share. This move comes amidst the company's ongoing acquisition process by Baker Hughes, which has been valued at $13.6 billion [1]. The acquisition, announced in May 2025, aims to bolster Baker Hughes' strategy in the energy and industrial technology sectors [2].

Chart Industries, a global leader in process technologies and equipment for gas and liquid molecule handling, reported a revenue of $4.2 billion and an adjusted EBITDA of $1 billion in 2024. The company operates 65 manufacturing locations and over 50 service centers worldwide, providing expertise across various industrial and energy markets [1].

Johnson Rice's downgrade reflects the uncertainty surrounding the acquisition and its potential impact on Chart Industries' financial performance. The firm cited the complexities of integrating two large organizations and the potential for delays in achieving anticipated synergies as reasons for the downgrade.

Baker Hughes anticipates significant cost savings and revenue growth from the acquisition, estimating annualized cost savings of $325 million within three years. The deal is expected to be closed by mid-2026, subject to regulatory approvals and a shareholder vote [2].

Despite the downgrade, Chart Industries' board of directors approved the acquisition, stating that Baker Hughes' proposal was superior to the previously announced all-stock merger deal with Flowserve [1]. The acquisition is expected to enhance Baker Hughes' capabilities in addressing energy challenges and sustainability goals, while also expanding its presence in growth markets such as data centers and new energy sectors [2].

Investors are advised to closely monitor the regulatory approval process and any updates on the acquisition timeline, as these factors could influence Chart Industries' stock performance.

References:
[1] https://www.nsenergybusiness.com/news/baker-hughes-to-buy-chart-industries-in-13-6bn-deal/
[2] https://www.nasdaq.com/articles/baker-hughes-acquire-chart-industries-136b-energy-tech-deal