No Changes Made To Goldman's KMT Estimates Following Investor Meeting

Goldman Sachs reports no changes to its outlook for Kennametal, Inc. KMT after attending the company's investor meeting on 9/20 in New York. In its research report, Goldman writes "The new customer-centric organization and brand rationalization under the Kennametal and Widia umbrellas should be net positives to KMT's market position going forward, though management did not quantify potential share gain opportunities. KMT has formalized long-term targets of structural cost reductions during the downturn, market growth, productivity and benefits from strategic realignment to a more customer-focused operating company, and target 15% ROIC by FY2013, which would imply a 500-1000 bp reduction in NWC % of sales, which could prove aggressive." Goldman maintains its Sell rating and $31 price target. Kennametal, Inc. closed yesterday at $30.55.