Kennametal ( NYSE: KMT ) -4.6% in Friday's trading after UBS downgraded shares to Sell from Neutral with a $19 price target, cut from $27, to reflect an "increased level of conviction" that the company's results will fall short of expectations.
Short cycle indicators suggest Kennametal's ( KMT ) growth will first flatten then likely decline over the next several quarters, UBS analyst Steven Fisher said in forecasting a 3% organic revenue decline in FY 2023E, compared with the consensus outlook for mid-single digit growth.
Fisher also believes macro risks in both North America and Europe warrant a lower multiple, and expects earnings misses and revised consensus estimates will drive the stock lower.
Seeking Alpha contributor offers a different view, seeing Kennametal ( KMT ) as " an attractive turnaround play ."
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Kennametal cut to Sell at UBS ahead of likely earnings misses