Chart Industries upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Daniel Kutz upgraded Chart Industries to Overweight from Equal Weight with an unchanged price target of $175. In Q3, the energy group has lagged the market by 10% as softening oil prices, slowing inflation, and potential interest rate cuts “all present headwinds for performance,” the analyst tells investors in a research note. In this backdrop, the firm remains selective and continues to prefer defensive sub-sector positioning among midstream and majors. Morgan Stanley favors gas over oil in exploration and production. It made rating changes in the group after revisiting the setup across the North American energy sector. The firm says Chart’s exposure to oil is “relatively de minimus” as its core portfolio is comprised of natural gas, energy transition, and renewables applications, where its outlook remains constructive.