Home / Business and Economy / Kennametal Stock Dives on Price Target Cut
Kennametal Stock Dives on Price Target Cut
18 Jul
Summary
- Morgan Stanley reduced Kennametal's price target to $31 from $36.
- Kennametal shares closed at $33.74, a 5.1% decrease.
- The company's stock is up 16.4% year-to-date but down from its high.
Shares of industrial materials and tools company Kennametal (KMT) declined 5.4% in afternoon trading on July 18, 2026, after Morgan Stanley lowered its price target to $31 from $36. The investment bank maintained its 'Equal Weight' rating.
This reduction signals a more cautious outlook, aligning with prevailing negative sentiment from analysts. Kennametal's stock closed the day at $33.74, down 5.1% from the prior day's close. The market overreacts to news, and such significant price drops can present buying opportunities for quality stocks.
Kennametal's shares have demonstrated volatility over the past year, with twelve moves exceeding 5%. The current price drop is considered meaningful by the market but not indicative of a fundamental shift in its business perception.
Looking back, the largest move occurred 12 months ago when the stock dropped 19.3% following missed fiscal fourth-quarter expectations and a weak financial outlook for the upcoming year. The company reported adjusted earnings per share of $0.34, missing estimates, and revenue of $516.4 million, below forecasts.
As of July 18, 2026, Kennametal's stock is up 16.4% year-to-date. Despite this, it trades 22% below its 52-week high of $43.27, which was recorded in May 2026. An investment of $1,000 made five years ago would currently be worth approximately $1,017.
