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Kennametal stock target raised by Loop Capital

EditorAhmed Abdulazez Abdulkadir
Published 05/23/2024, 08:30 AM
© Reuters.
KMT
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On Thursday, Loop Capital made an adjustment to the price target of Kennametal (NYSE:KMT), a company specializing in tooling and materials for manufacturing sectors. The price target was raised to $24 from the previous $23, while maintaining a Hold rating on the stock.

The adjustment follows Kennametal's fiscal third-quarter results, which were largely in line with expectations, and the company's guidance indicating a seasonal wrap-up to fiscal year 2024. Loop Capital's analyst noted that Kennametal's restructuring program is on course to achieve annual savings of $35 million by the end of the year. Despite this, the firm views Kennametal's fiscal year 2027 earnings target as ambitious without significant improvements in its core markets.

An upcoming leadership change was also highlighted, with Sanjay Chowbey set to take over as CEO from Christopher Rossi on May 31. The analyst suggested that this transition might bring about a strategic realignment within the company.

The report concluded with a reaffirmation of the Hold rating, citing the current state of end demand and cost structure as reasons for not altering the stock's rating. The new price target of $24 reflects market valuation and incorporates the latest company commentary and fiscal projections.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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