Loop Capital lowered the firm’s price target on Kennametal (KMT) to $22 from $24 and keeps a Hold rating on the shares. The negative Q3 pre-announcement by MSC Industrial (MSM) provides a negative read-through for the company as MSC is a major distributor for Kennametal, representing nearly $90M of annual sales or about 7% of Metal Cutting segment, the analyst tells investors in a research note. Kennametal’s “General Engineering” sales for the Metal Cutting business will decline more than 7% due to destocking, while automotive headwinds cited by MSC Industrial, Lincoln Electric (LECO), and others present an additional drag, the firm added.
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Read More on KMT:
- Kennametal resumes operations at Arkansas facility
- Kennametal says facility in Rogers, AR, sustained damage from tornado
- Kennametal price target raised to $24 from $23 at Loop Capital
- Kennametal price target raised to $25 from $24 at Barclays
- Kennametal sees FY24 adjusted EPS $1.40-$1.55, consensus $1.48