JPMorgan Chase & Co. Issues Positive Forecast for Kennametal (NYSE:KMT) Stock Price

Key Points

• JPMorgan Chase & Co. raised its price target for Kennametal (NYSE: KMT) from $20.00 to $22.00, indicating a potential upside of 2.88%, although the stock is currently rated as "underweight".
• Other brokerages have also updated their ratings on Kennametal, with UBS raising its rating from "sell" to "neutral" and Loop Capital increasing its price target to $24.00.
• Kennametal reported earnings of $0.34 per share for the last quarter, falling short of expectations, and experienced a year-over-year revenue decline of 4.9%.

Kennametal (NYSE:KMT - Get Free Report) had its price target hoisted by investment analysts at JPMorgan Chase & Co. from $20.00 to $22.00 in a report released on Tuesday,Benzinga reports. The brokerage currently has an "underweight" rating on the industrial products company's stock. JPMorgan Chase & Co.'s target price indicates a potential upside of 2.88% from the stock's current price.

A number of other brokerages have also recently commented on KMT. UBS Group raised Kennametal from a "sell" rating to a "neutral" rating and lifted their price target for the stock from $19.00 to $21.00 in a research report on Friday, August 15th. Loop Capital reiterated a "hold" rating and set a $24.00 price objective (up from $21.00) on shares of Kennametal in a research note on Wednesday, June 25th. Zacks Research upgraded Kennametal to a "strong sell" rating in a research report on Monday, August 11th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Kennametal in a report on Wednesday, October 8th. Six research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Reduce" and a consensus target price of $24.29.

Kennametal Stock Performance

Shares of KMT opened at $21.39 on Tuesday. The company has a quick ratio of 1.19, a current ratio of 2.46 and a debt-to-equity ratio of 0.45. Kennametal has a 52 week low of $17.30 and a 52 week high of $32.18. The business has a 50-day simple moving average of $21.19 and a two-hundred day simple moving average of $21.58. The stock has a market cap of $1.63 billion, a price-to-earnings ratio of 17.80, a PEG ratio of 3.59 and a beta of 1.46.

Kennametal (NYSE:KMT - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The industrial products company reported $0.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.06). Kennametal had a net margin of 4.73% and a return on equity of 8.09%. The company had revenue of $516.45 million during the quarter, compared to the consensus estimate of $527.52 million. During the same period in the previous year, the business earned $0.49 earnings per share. Kennametal's revenue for the quarter was down 4.9% on a year-over-year basis. On average, analysts expect that Kennametal will post 1.17 EPS for the current year.

Hedge Funds Weigh In On Kennametal

Hedge funds have recently made changes to their positions in the business. Ameritas Advisory Services LLC bought a new stake in Kennametal in the second quarter worth $27,000. Headlands Technologies LLC lifted its holdings in shares of Kennametal by 80.7% during the second quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company's stock valued at $35,000 after purchasing an additional 682 shares in the last quarter. Nomura Asset Management Co. Ltd. increased its position in Kennametal by 116.2% during the second quarter. Nomura Asset Management Co. Ltd. now owns 1,600 shares of the industrial products company's stock valued at $37,000 after acquiring an additional 860 shares during the last quarter. Smartleaf Asset Management LLC increased its position in Kennametal by 142.3% during the second quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company's stock valued at $48,000 after acquiring an additional 1,228 shares during the last quarter. Finally, US Bancorp DE increased its position in Kennametal by 93.4% during the first quarter. US Bancorp DE now owns 2,145 shares of the industrial products company's stock valued at $46,000 after acquiring an additional 1,036 shares during the last quarter.

About Kennametal

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.

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