UPDATE: JP Morgan Lowers PT to $36 on Kennametal

JP Morgan reiterated its Neutral rating on Kennametal

and lowered its price target from $40 to $36. JP Morgan said, "he company had an unusual quarter as YA distributors were stocking Widia products and destocked legacy brands, so comparables were tough. Pricing remains rational in the market place and management will not use pricing to liquidate inventories, which were higher than expected. In our view, demand may improve sequentially as we move through KMT's fiscal year but the comparables are very tough through FQ3 at least, making the 35%/65% split and the mid teen margins appear overly optimistic." Kennametal closed at $36.91 on Tuesday.