Barrington Research Cuts Price Target on Kennametal (KMT), Notes No Need for Acquisitions
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Price: $29.78 -2.62%
Rating Summary:
5 Buy, 9 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
5 Buy, 9 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barrington Research is reaffirming its Outperform rating on shares of Kennametal (NYSE: KMT) while lowering its price target from $55 to $47.
The company recently announced it has agreed to acquire a U.K.-based wear resistant parts company. The firm highlights, "Recent market share gains suggested that KMT's shareholders could benefit from 2012-2013 earnings growth without the risk related to acquisitions. After modeling the Deloro Stellite deal, we believe that 2013 accretion offsets the incremental risk from the additional debt of approximately $320 million."
The company is scheduled to announce its second quarter fiscal 2012 results on January 26. The firm anticipates management will provide further details on Stellite guidance for 2012-2013. Barrington Research's market checks indicate cutting tool demand remained solid throughout December and that KMT continues to gain market share.
The firm is reiterating its Q2 and FY12 EPS estimates of $0.78 and $3.75.
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 $42.57 yesterday.
The company recently announced it has agreed to acquire a U.K.-based wear resistant parts company. The firm highlights, "Recent market share gains suggested that KMT's shareholders could benefit from 2012-2013 earnings growth without the risk related to acquisitions. After modeling the Deloro Stellite deal, we believe that 2013 accretion offsets the incremental risk from the additional debt of approximately $320 million."
The company is scheduled to announce its second quarter fiscal 2012 results on January 26. The firm anticipates management will provide further details on Stellite guidance for 2012-2013. Barrington Research's market checks indicate cutting tool demand remained solid throughout December and that KMT continues to gain market share.
The firm is reiterating its Q2 and FY12 EPS estimates of $0.78 and $3.75.
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 $42.57 yesterday.
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