EnPro Industries: KeyBanc upgrades on portfolio transformation

Enpro

24/09/2020 11:34

** KeyBanc upgrades engineered industrial products maker
 NPO.N  to "overweight" from "sector weight", cites changes co
has made under CEO Marvin Riley
    ** Brokerage says under Riley, who took over as CEO
mid-2019, EnPro has been quietly transforming its portfolio,
which should ultimately support greater earnings consistency and
considerably better returns profile moving forward
    ** Says CEO "quickly reshaping the portfolio" and has been
focused on ridding it of underperforming assets and antiquated
technologies, and investing into markets with greater long-term
secular appeal
     ** Brokerage sees "room for significant multiple expansion
over time as investors begin to more fully appreciate new EnPro"
    ** "Given portfolio changes and expectations for upward
earnings revisions near term, we believe NPO shares are
undervalued at current levels" - KeyBanc
    ** KeyBanc maintains PT of $68, matching Wall Street's
median; four brokerages covering stock rate it "buy" or higher
    ** Up to Wednesday's close, NPO shares down ~18.5% YTD

 (Reporting By Geetha Panchaksharam)
 ((geetha.panchaksharam@thomsonreuters.com))