Positive Outlook for Kennametal Inc. (KMT)
March 15, 2010 8:30 AM
On the news of February orders still trending upwards, analysts John Cooper and C. Schon Williams of BB&T have raised their price target for Kennamental Inc. (NYSE: KMT) to $36. They believe the three-month figure yields a February-specific increase of mid to high single digits, up from their January estimate of down low-single digits. Management also noted February gained sequentially on easing comps and further gains in tone.
BB&T is projecting that Kennametal, a PA-based manufacturer of tool holders, consumables, and specialty components/services used for cutting or grinding, will show a sales increase of 5%-10% by fiscal Q3’10. With February orders slipping into the black, business continuing to improve, comps continuing to ease, and FOREX assumption looking ~200 bps too low, they think this sales goal and their sales forecast are well within range.
Therefore, these analysts reiterate their Buy rating and raise their price target to $36 (was $32) with estimates unchanged.
