While the majority of analysts have been falling all over themselves over Kennametal (NYSE:KMT) after their first earnings report, UBS (NYSE:UBS) was more subdued, maintaining their "Neutral" rating on them, while dropping their price target significantly.
UBS said, "We are raising our FY11E EPS to $2.35, from $2.10, largely to reflect an improved margin profile. We are tweaking our FY12 and FY13 EPS estimates, to $2.80 and $3.15, from $2.85 and $3.18, respectively."
Earnings projections from Kennametal were also raised from a range of $1.85 to $2.15 a share to $2.25 to $2.45.
Kennametal did raise their guidance for Fiscal 2011, with a moderate growth pace to continue in their eyes. Both earnings and sales projections were also raised.
Even so, UBS sees them struggling with their share price, and lowered their price target from $36 to $30.
Kennametal closed Wednesday at $33.80, losing $0.54, or 1.60 percent.
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