New York, January 13, 2026, 12:28 EST — Regular session
- Kennametal (KMT) shares climb following Jefferies’ upgraded outlook on the toolmaker
- Tungsten prices surge, dragging raw-material costs back into the spotlight for industrial firms
- Investors are eyeing the upcoming earnings report for clues on margins and demand
Kennametal Inc shares jumped about 8.4% to $33.32 in midday trading Tuesday after Jefferies upgraded the industrial toolmaker and raised its price target. The stock gained $2.60, hitting a high of $34.14, with volume just over 1 million shares. (TradingView)
The timing is tricky for investors: tungsten, crucial for carbide cutting tools, has been surging. On Tuesday, a China benchmark for ammonium paratungstate (APT)—a key intermediate for pricing tungsten—hit 725,000 yuan per metric ton, according to Shanghai Metal Market data. (Metal)
Jefferies analyst Stephen Volkmann upgraded Kennametal from Hold to Buy, boosting his price target from $28 to $40. The catalyst? An “unprecedented price spike” in tungsten. According to Jefferies, this surge should boost near-term earnings since price hikes tend to hit the top line before input costs catch up. The firm also highlighted that short-cycle markets, the quicker-moving segments of manufacturing, are showing early signs of a rebound—making now a good moment to hold. (TipRanks)
Other analysts have adjusted their targets too. UBS’s Steven Fisher maintained a Neutral rating—basically a hold—but raised his price target to $32 from $28 in a Monday note. (GuruFocus)
Morgan Stanley’s Angel Castillo stuck with an Equal-Weight rating—essentially a hold—and bumped up his price target to $29 from $27. The stock’s jump on Tuesday pushed it past both marks. (GuruFocus)
Kennametal, the Pittsburgh-based maker of metal-cutting tools and wear-resistant parts for aerospace, transportation, and energy sectors, competes with companies like Sandvik. In November’s quarterly report, the company raised its annual guidance, projecting second-quarter sales between $500 million and $520 million, with adjusted earnings per share in the range of $0.30 to $0.40; these “adjusted” figures exclude items such as restructuring costs. CEO Sanjay Chowbey described the quarter as having “started off strong.” (Kennametal)
Tungsten has rattled some industries since last year, following price surges fueled by U.S.-China trade tensions and Beijing’s export restrictions on key metals, Reuters noted in October. That uncertainty has investors skittish about how fast manufacturers can pass on higher costs. (Reuters)
Timing cuts both ways. Kennametal flagged in regulatory filings that shifts in raw material availability and commodity prices can cause swings in results. A sudden drop in tungsten prices could squeeze margins as fast as a rise could boost them.
The next major event is the company’s earnings report due Feb. 4. Investors will be watching closely for any guidance changes and updates on how pricing is tracking against input costs. Zacks forecasts earnings around $0.33 per share for this release. (Zacks)
