UPDATE: Stifel Nicolaus Initiates Kennametal with Buy, $54 PT

Stifel Nicolaus initiates its coverage on Kennametal

with a Buy rating and a $54 price target, reflecting the company's diversification in customers and broad portfolio. Stifel Nicolaus says, "Kennametal serves a diverse group of end markets through its broad portfolio of products. End markets served include oil and gas drilling, road rehabilitation, surface and underground mining, machine tooling, aerospace, as well as other parts of the manufacturing economy. Approximately 80% of revenues are consumables. We have established a fiscal 2012 EPS estimate of $3.85 on revenues of $2.74 billion, representing 14% growth from fiscal 2011 levels. For fiscal 2013, we are setting a full year EPS estimate of $4.44 on revenues of $3.09 billion." KMT closed at $43.94 yesterday.