ChampionX Corp. (CHX) announced that it has completed the acquisition of Scientific Aviation Inc. The terms of the transaction have not been disclosed so far.
Scientific Aviation is an airborne research company that specializes in emissions detection and quantification of greenhouse gases and trace gas measurements for air quality. ChampionX provides engineered equipment and technologies that help companies drill for and produce oil and gas.
By combining technologies of both the companies with ChampionX’s extensive network of field technicians, the deal is expected to support upstream and midstream operators by strengthening their environmental management practices and reducing global methane emissions.
The President and Chief Executive Officer of ChampionX, Sivasankaran Somasundaram, said, “Our acquisition of Scientific Aviation further demonstrates our commitment to the strategic priority of evolving our portfolio for sustained growth as the energy industry evolves.” (See ChampionX stock chart on TipRanks)
On July 2, Stifel Nicolaus analyst Stephen Gengaro maintained a Buy rating on the stock but raised the price target to $30 from $26 (18.25% upside potential).
Gengaro sees potential in ChampionX for multi-year earnings and cash flow growth. Also, the analyst expects pricing to drive margin expansion in the second half and in 2022.
The stock has a Strong Buy consensus rating based on 3 Buys and 1 Hold. The average ChampionX price target of $25.75 implies 1.5% upside potential.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on ChampionX with 5.7% of investors registered with TipRanks increasing their exposure to CHX stock over the past 30 days.
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