1) Chart Industries, Inc. (NYSE:GTLS)
Forward P/E as of October 8: 9.17x
Number of Hedge Fund Holders: 47
Average Upside Potential: 53.19%
Chart Industries, Inc. (NYSE:GTLS) is engaged in designing, engineering, and manufacturing process technologies and equipment for gas and liquid molecules in the US and internationally.
In its recent earnings call, the company highlighted that it has exceeded its commercial synergy targets, and is anticipating $1 billion in synergies in Q3 2024. Chart Industries, Inc. (NYSE:GTLS) has a strong commercial pipeline throughout diverse markets, which includes data centers and energy transition. Wall Street remains optimistic about Chart Industries, Inc. (NYSE:GTLS)’s growth prospects as a result of record orders in the specialty segment, thanks to larger-scale CCUS projects and expanded applications.
The company continues to respond to potential growth opportunities in the UK, mainly in green hydrogen and industrial PCUS parks. Given the healthy sales momentum in the RSL segment, significant non-big LNG orders, and an emphasis on modular LNG solutions, Chart Industries, Inc. (NYSE:GTLS) is confident in its ability to achieve financial targets and exploit emerging market opportunities.
The Howden acquisition has been tagged as a transformational move in the company’s corporate strategy. The deal has significantly expanded Chart Industries, Inc. (NYSE:GTLS)’s operational scope, and has transformed it from a specialized equipment manufacturer to a more diversified industrial energy player. Wall Street believes that this acquisition should strengthen Chart Industries, Inc. (NYSE:GTLS)’s position in key growth markets, which include LNG, hydrogen, and various specialty sectors.
Analysts at Stifel Nicolaus reiterated a “Buy” rating, setting a $199.00 price target on 26th August. Aristotle Capital Boston, LLC, an investment advisor, released its second quarter 2024 investor letter. Here is what the fund said:
“Chart Industries, Inc. (NYSE:GTLS), an industrial equipment manufacturer that provides cryogenic equipment for storage, distribution, and other processes within the industrial gas and LNG, hydrogen, helium, carbon capture and water treatment industries was added to the portfolio. Strong forward demand for LNG and accelerating hydrogen opportunities coupled with company-specific improvement initiatives should benefit the company moving forward.”
While we acknowledge the potential of GTLS as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than GTLS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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