On June 4, analysts at BTIG reiterated a Buy rating and maintained a $210 price target on Chart Industries Inc. (NYSE:GTLS). The research firm has reiterated its bullish stance on the company announcing plans to merge with Flowserve Corp. (NYSE:FLS).
The transaction is expected to close in the fourth quarter. Chart Industries stockholders will receive 3.165 shares of Flowserve common stock, for each share of Chart Industries common stock. Post close, Chart Industries shareholders will own 53.5% of the combined entity, while Flowserve shareholders will own 46.5%.
After the merger, Liquefied natural gas will account for 9% of the combined company’s operations. It will mark a significant shift from Chart Industries’ initial focus on natural gas-related equipment. Consequently, the acquisition underscores the company’s renewed focus on resilient aftermarket revenues.
Flowserve’s merger follows Howden’s acquisition, allowing Chart Industries to expand its service offerings. BTIG analysts remain bullish about the company’s prospects following the acquisitions as they affirm long-term growth prospects.
Chart Industries is a global manufacturer of engineered liquid gas supply chain equipment. It specializes in cryogenics and compression technologies, serving the clean energy and industrial gas markets. Its products are used in various stages, including production, storage, distribution, and end-use of gases like LNG, hydrogen, and industrial gases.
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