Loop Capital has increased its price target for Kennametal (KMT, Financial) from $21 to $24, while maintaining a Hold rating for the stock. The firm has adopted a more positive stance on Kennametal, highlighting beneficial conditions in tungsten pricing and favorable foreign exchange trends. These factors are expected to contribute significantly to sales growth, surpassing current fiscal year 2026 market expectations, according to the analyst's report.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Kennametal Inc (KMT, Financial) is $21.64 with a high estimate of $24.00 and a low estimate of $19.00. The average target implies an downside of 1.76% from the current price of $22.03. More detailed estimate data can be found on the Kennametal Inc (KMT) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Kennametal Inc's (KMT, Financial) average brokerage recommendation is currently 3.4, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Kennametal Inc (KMT, Financial) in one year is $25.78, suggesting a upside of 17.02% from the current price of $22.03. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Kennametal Inc (KMT) Summary page.
KMT Key Business Developments
Release Date: May 07, 2025
- Sales: Decreased 6% year over year; Metal Cutting sales declined 4% organically, Infrastructure declined 2% organically.
- Adjusted EPS: Increased to $0.47 from $0.30 in the prior-year quarter.
- Restructuring Savings: Achieved approximately $6 million in the quarter, on pace for $15 million run rate savings.
- Operating Margins: Adjusted EBITDA margin at 17.9%, operating margin at 10.3%.
- Advanced Manufacturing Tax Credit: Provided a $10 million benefit.
- Share Repurchase: $25 million of shares bought back during the quarter.
- Dividends: Paid $15 million in dividends.
- Free Operating Cash Flow: Decreased to $63 million from $84 million year-to-date.
- Full-Year Sales Outlook: Revised to $1.97 billion to $1.99 billion.
- Adjusted EPS Outlook: Raised to $1.30 to $1.45.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kennametal Inc (KMT, Financial) achieved adjusted EPS of $0.47, exceeding expectations due to an advanced manufacturing tax credit.
- The company successfully implemented restructuring actions, achieving $6 million in savings this quarter and is on track for $15 million in annualized savings.
- Aerospace and Defense sales increased by 7%, driven by defense project wins in the Infrastructure segment.
- Kennametal Inc (KMT) continued its share repurchase program, buying back $25 million in shares and paying $15 million in dividends.
- The company is confident in its ability to fully mitigate the impact of tariffs through strategic actions such as optimizing product flow and implementing tariff surcharges.
Negative Points
- Sales decreased by 6% year over year, with declines in both the Metal Cutting and Infrastructure segments.
- The EMEA region remains the slowest market, with a 4% decline on a constant currency basis.
- General Engineering and Transportation end markets were negatively impacted by weak market conditions in EMEA and the Americas.
- The Earthworks segment faced challenges due to lower mining activity in the Americas and Asia Pacific.
- Kennametal Inc (KMT) faces ongoing uncertainties related to tariffs, which could impact future financial performance.
