Jefferies Reiterates Buy on Kennametal (KMT) After Meeting with Management

Jefferies reiterated a Buy rating and $30.00 price target on Kennametal (NYSE: KMT) after meeting with management. The new CEO Ron DeFeo was not yet willing to put numbers around the potential for margin improvement. However, he did indicate that 1/ double digit EBIT margins could be possible in 2017, and 2/historical company margin performance should be re-achievable at some point.

Analyst Stephen Volkmann commented, "We recently met with CEO Ron DeFeo to review the changes being made to the KMT organization and gain some insights into the future opportunities. We continue to view KMT as a margin expansion story with ample opportunity to improve operating profitability even in a no growth environment and see the ultimate value opportunity in the $30-40 range."

For an analyst ratings summary and ratings history on Kennametal click here. For more ratings news on Kennametal click here.

Shares of Kennametal closed at $22.96 yesterday.

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