KeyBanc downgraded EnPro Industries (NYSE: NPO) from Overweight to Sector Weight and removed its price target. Analyst Jeffrey Hammond now sees balanced risk/reward.

"While we are encouraged by NPO’s recent asbestos liability resolution, we are concerned over deteriorating demand trends in Sealing (Garlock and Stemco) and unfavorable margin mix in Power Systems, that are likely to persist near term. As a result, we are downgrading NPO shares to Sector Weight (from Overweight)," said Hammond.

"We view risk/reward as balanced given that valuation should move more in line with peers once consensus earnings expectations are reset. With the asbestos resolution catalyst realized, we would like to see more consistent base business results and capital allocation before getting more constructive," added the analyst.

For an analyst ratings summary and ratings history on EnPro Industries click here. For more ratings news on EnPro Industries click here.

Shares of EnPro Industries closed at $56.28 yesterday.