Kennametal

KMT · NYSE

$31.21+$0.59 (+1.93%)TodayMarket closed · Oct 20, 7:37 PM ET

Prev close $30.62

KMT analyst rating

HoldConsensus of 6 analysts over the last 12 months. 0% rate it a buy.

Strong buy0
Buy0
Hold3
Underperform3
Sell0

12-month price target · 9 analysts

Average $32.77 (+5.0% upside)

Low: $27.27
Now: $31.21
High: $39.90

Upgrades and downgrades

The latest rating actions, newest first

KMT analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
JP Morgan	Oct 8, 2026	Maintains	Underweight	$34.00 → $30.00	53%
DA Davidson	Aug 11, 2026	Maintains	Neutral	$34.00 → $30.00	65%
UBS	Aug 10, 2026	Maintains	Neutral	$39.00 → $35.00	57%
Morgan Stanley	Aug 10, 2026	Downgrade	Equal-Weight → Underweight	$31.00 → $27.00	42%
Morgan Stanley	Jul 17, 2026	Maintains	Equal-Weight	$36.00 → $31.00	42%
JP Morgan	Jul 13, 2026	Maintains	Underweight	$40.00 → $34.00	53%
DA Davidson	Jun 16, 2026	Initiates	Neutral	$34.00	65%
Barclays	May 27, 2026	Downgrade	Equal-Weight → Underweight	$40.00 → $33.00	65%
JP Morgan	May 7, 2026	Maintains	Underweight	$37.00 → $40.00	53%
Jefferies	May 7, 2026	Downgrade	Buy → Hold	$47.50	62%

The case for and against

Updated Oct 15, 2026

Bull case

Kennametal is favorably positioned because its core Metal Cutting franchise benefits from an improving industrial cycle, with aerospace & defense, energy, and automotive tooling all supporting demand, while FY3Q26 marked a second consecutive quarter of organic volume growth after roughly 9 sequential quarters of declines. Strong tungsten supply management through Bolivia and recycling, combined with pricing discipline, has already driven exceptional execution, including FY4Q adj. EPS of $2.96 versus $2.31 consensus and gross margin expansion to 58.9% from 28.2% last year. The outlook is further supported by FY1Q27 guidance for sales of $745M-$775M and adj. EPS of $2.50-$2.80, plus restructuring savings and normalized FCF that could enhance margins and capital returns as volume recovery continues.

Bear case

Kennametal is facing a fundamentally weak earnings setup because much of the recent profit improvement stems from a temporary tungsten price/cost timing benefit of about $2.45 that will fade as prices stabilize, exposing “core” FY26 EPS of only $1.30-$1.55 and FY27 “core” EPS of $1.98. Despite management’s FY27 sales guidance of $3.33-$3.45B and adj. EPS of $4.15-$5.15, the underlying operating lift is being offset by higher wages, general inflation, elevated debt and interest expense, and roughly -$0.14 of net core operating headwind. Free operating cash flow is also pressured, with FY26 guided at -30% of adj. net income as working capital rises, reinforcing concern that earnings quality and cash conversion remain poor.

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