UPDATE: KeyBanc Capital Markets Downgrades Gardner Denver to Hold on Drilling Caution

KeyBanc Capital Markets lowered its rating on Gardner Denver

from Buy to Hold and removed its $68 price target. KeyBanc Capital Markets commented, "We are downgrading shares of GDI to reflect our more cautious view of the drilling pump landscape as well as broader slowing in its industrial businesses globally. While we still see considerable franchise value in the Company, we do not believe there is a high likelihood that the Company is sold under pressure from its activist investor. In addition to choppy demand trends and forward earnings risk, we see shares as range bound until the Company works through its CEO transition and recent management turnover issues. We would revisit our rating upon evidence of stabilization in the petroleum pump business, clarity at the CEO position, or a pull back in the shares." Gardner Denver closed at $61.18 on Thursday.