Kennametal upgraded to Buy at Jefferies on tungsten price spike

As previously reported, Jefferies analyst Stephen Volkmann upgraded Kennametal (KMT) to Buy from Hold with a price target of $40, up from $28. The firm cites an “unprecedented price spike” in Tungsten – up 190% y/y – that should drive Kennametal’s near-term earnings sharply higher on immediate price and delayed costs, the analyst tells investors in a research note. The margin tailwind also effectively “pays to wait” as short-cycle markets show early signs of recovery, the firm added.