Skip to main content

Market Overview

Asbestos Settlement Means Good News For This Mid-Cap

Share:

Oppenheimer issued a note on EnPro Industries, Inc. (NYSE: NPO) after the company announced a comprehensive settlement to resolve all current and future asbestos claims for $480 million. Analysts rate EnPro Industries as an Outperform with an $85 price target.

Analyst Ian Zaffino wrote, "Barring unexpected objections to the plan and assuming at least 75 percent of claimants vote for the plan, the plan could be approved and become final during the summer of 2017... Overall, we believe this development is highly favorable to NPO shareholders. It eliminates a large overhang on the stock, allows investors to more credibly view pro forma estimates and paves the way to major shareholder capital returns."

Analysts at Oppenheimer gave one key reason why the company was able to contain the risk of asbestos claims and move forward with their strategic business operations: The reorganization of Garlock Sealing Technologies(GST).

Oppenheimer noted that in an effort to mitigate the risk of asbestos claims, EnPro bankrupted their GST subsidiary. This has allowed the parent company to remove significant monetary overhangs from the stock. Going forward analysts believe that EnPro should be able to streamline business operations and recover from the settlement.

Shares of EnPro is trading at $60.37, up 3.46 percent.

Latest Ratings for NPO

DateFirmActionFromTo
Mar 2021OppenheimerMaintainsOutperform
Jan 2021KeyBancMaintainsOverweight
Nov 2020KeyBancMaintainsOverweight

View More Analyst Ratings for NPO
View the Latest Analyst Ratings

 

Related Articles (NPO)

View Comments and Join the Discussion!

Posted-In: Ian Zaffino OppenheimerAnalyst Color Price Target Analyst Ratings

Latest Ratings

StockFirmActionPT
ETCredit SuisseMaintains13.0
IFRXCredit SuisseMaintains2.8
METCredit SuisseMaintains68.0
FLXNCredit SuisseMaintains14.0
ENPHCapital OneInitiates Coverage On175.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com