Why Shares in Chart Industries Are Surging This Week
Shares in Chart Industries (NYSE: GTLS) rose by 12.5% in the week to Friday morning, according to data provided by S&P Global Market Intelligence. The move comes after a well-received set of fourth-quarter earnings on Wednesday.
It's a positive step for a stock that's endured its fair share of volatility over the year. While the stock is up 62% over the last five years, it's also down 39% since the company announced a deal to acquire air and gas handling products company Howden in early November 2022 for $4.4 billion. Taking on a significant amount of debt in a rising rate environment, when the economy is passing through an uncertain period, is questionable, and investors reacted negatively to the deal at the time.
Still, the recent results have provided evidence that the Howden deal is working out. Management declared that it had "exceeded our target year-one annualized cost synergies of $175 million (actual to date of $181.4 million), a month ahead of our one-year Howden ownership period" and reiterated its target for "approximately $250 million of cost synergies by the end of our third year of ownership."
Source Fool.com
