UPDATE: Bank of America Upgrades Kennametal to Neutral; Stock Pricing In Low Expectations

Bank of America raises its rating on Kennametal

from Underperform to Neutral with a maintained price objective of $36. Bank of America notes, "We upgrade KMT from Underperform to Neutral following the stock's >25% selloff since its reported FY3Q12 results on April 26th. We think the stock is appropriately pricing in a low growth scenario in the near term. While we think consensus estimates are still too high and KMT will likely miss its FY4Q12 forecast, in our view, investors have sufficiently adjusted their EPS expectations down heading into the reporting season, following the company's weak order trends through May." KMT closed at $31.86 on Monday.