Chart Industries downgraded on higher leverage at Piper Sandler - InvestingChannel

Chart Industries downgraded on higher leverage at Piper Sandler

Piper Sandler analyst Luke Lemoine downgraded Chart Industries to Neutral from Overweight with a price target of $133, down from $228. The analyst cites the company’s additional leverage from Howden for the downgrade. Howden’s product lines do fit into Chart’s strategy, but the balance sheet along with the structure of the convertible preferred “overshadow the industrial logic,” Lemoine tells investors in a research note. With a more levered balance sheet for an industrial headed into a probable recession, the analyst understands the market selling off the shares, especially when free cash flow is the debt repayment plan and “there hasn’t been much FCF as of late.”

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