How The Kennametal (KMT) Story Is Shifting With Tungsten Tailwinds And New Street Targets

Simply Wall St

Mon, February 23, 2026 at 1:24 PM GMT+9 3 min read

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Kennametal’s average fair value estimate has shifted from $33.13 to $35.50, mirroring a cluster of higher analyst price targets across the Street. Those updated targets, now ranging from the low to mid US$20s into the US$30s and US$40s, reflect how analysts are weighing tungsten driven earnings support against questions on how much upside remains. As you read on, you will see how these moving targets fit into the broader Kennametal story and how to track the next turns in that narrative.

Stay updated as the Fair Value for Kennametal shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Kennametal.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

Jefferies moved Kennametal to a Buy rating and lifted its price target to US$40 from US$28, pointing to what it calls an unprecedented tungsten price spike. The firm expects this to support near term earnings and margins.

UBS and Morgan Stanley raised targets into the high US$20s and low US$30s, framing their changes as model adjustments and keeping Neutral and Equal Weight stances. This signals that, at current levels, they see Kennametal as reasonably aligned with their forecasts.

Barclays, BofA, Goldman Sachs, JPMorgan and UBS have all issued higher targets in recent weeks. This collectively pushes the Street target cluster higher and supports the move in the average fair value estimate to US$35.50.

🐻 Bearish Takeaways

Several firms, including UBS, Morgan Stanley and Barclays, maintain Neutral or Equal Weight ratings even after lifting targets. This suggests they still see balanced risk and reward at recent prices rather than clear mispricing.

Jefferies explicitly ties its upgrade to tungsten pricing and describes a margin tailwind. This flags a reliance on a commodity driven benefit that may not fully address longer term growth or execution questions once that effect fades.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives!

NYSE:KMT 1-Year Stock Price Chart

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How This Changes the Fair Value For Kennametal

The fair value estimate moved from US$33.13 to US$35.50.

The modeled revenue growth rate moved from 7.79% to 8.55%.

The net profit margin assumption moved from 9.37% to 9.18%.

The assumed future P/E multiple moved from 12.9x to 14.6x.

The discount rate moved from 8.84% to 8.85%.

 






Story Continues  

Never Miss an Update: Follow The Narrative

Narratives link Kennametal’s business story to a set of earnings, revenue and margin assumptions so you can see how the numbers line up with the real world. They update over time as new data, guidance and research come through.

Head over to the Simply Wall St Community and follow the Narrative on Kennametal to stay up to date on:

How cost reduction, portfolio changes and digital tooling initiatives are expected to support higher quality earnings in areas like Aerospace & Defense and advanced manufacturing.

The role that global infrastructure spending, automation, energy transition and new materials could play in demand for Kennametal’s tungsten carbides and wear solutions.

Risks that weak end markets, unresolved cost issues, stagnant revenues near US$2b and raw material pressures such as tungsten could pose to long term margins and market share.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include KMT.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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