Breaking Down Kennametal: 5 Analysts Share Their Views

Kennametal KMT underwent analysis by 5 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $22.2, a high estimate of $24.00, and a low estimate of $20.00. The current average, unchanged from the previous average price target, holds steady.

Decoding Analyst Ratings: A Detailed Look

A clear picture of Kennametal's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Kennametal. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Kennametal compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Kennametal's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Kennametal's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Kennametal analyst ratings.

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Get to Know Kennametal Better

Kennametal Inc is a manufacturer of metalworking tools and wear-resistant engineered components and coatings. The company operates in two business segments; Metal Cutting and Infrastructure. It generates maximum revenue from the Metal Cutting segment. The Metal Cutting segment develops and manufactures high-performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including aerospace, general engineering, energy, and transportation. Geographically, it derives maximum revenue from the United States and the rest from Germany, China, Canada, India, Italy, and other countries.

Financial Milestones: Kennametal's Journey

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Kennametal's revenue growth over a period of 3M has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -5.7%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Kennametal's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 6.47%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Kennametal's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.56%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Kennametal's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.28%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Kennametal's debt-to-equity ratio stands notably higher than the industry average, reaching 0.53. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.