KeyBanc has increased its price target for EnPro Industries to $310 from $260 and reiterated an Overweight rating on the shares. The new target implies upside from the most recent market price of $271.26. Broader data accompanying the coverage also points to the stock potentially trading above its Fair Value, and the shares have climbed 31.58% over the past 12 months.
The firm updated its financial model and outlook after EnPro released its fourth-quarter 2025 earnings report and held a conference call with investors. Management reported growth in both the AST and Sealing segments during the quarter, extending a revenue growth trend that measures 6.44% over the last twelve months.
KeyBanc’s analysts flagged near-term margin pressure in the AST segment that they link to growth-related investments. Those investments are being made in advance of what KeyBanc described as an emerging semiconductor upcycle, and the firm characterized this step-up in spending as a driver of temporary margin headwinds.
Alongside operational commentary, the analyst highlighted EnPro’s increasing merger and acquisition capability as a support for the higher price target. KeyBanc framed these elements - segment-level growth, strategic investments, and M&A capability - as contributors to a path toward sustained earnings momentum, with an expectation that this momentum will persist through 2026 and beyond.
EnPro’s fourth-quarter results also exceeded analyst expectations on a reported basis. The company’s adjusted earnings per share rose by 26.8% for the quarter, a gain the company attributed to strong performance in its Sealing Technologies business and an uptick in semiconductor demand. Along with the quarterly beat, EnPro issued a constructive outlook for 2026, indicating anticipated growth in the coming year.
The combination of above-consensus quarterly results, segment-level strength, and guidance for the year ahead has drawn attention from investors and sell-side analysts. Market participants will likely weigh the company’s investment-led margin dynamics against the potential upside expected by KeyBanc and implied in the new $310 price target.
- Analyst action: Price target raised to $310 from $260; Overweight rating maintained.
- Operational drivers: Growth in AST and Sealing segments; revenue up 6.44% over the last 12 months.
- Financial results: Adjusted EPS increased 26.8% in Q4, and the company provided a positive 2026 outlook.
Investors evaluating EnPro will need to balance the firm’s near-term margin trade-offs for longer-term semiconductor exposure and the potential benefits of a growing M&A capability against current valuation indicators that suggest the stock may be trading above fair value.