Kennametal (KMT) is poised to benefit from a near-term operating margin expansion driven by elevated tungsten prices, Morgan Stanley said in a Monday research report.

The brokerage said it now expects fiscal Q3 organic revenue growth of 9% and adjusted earnings per share of $0.58 from $0.49 earlier.

For the full-year fiscal 2026, the brokerage modelled organic revenue growth of 10% and boosted its adjusted EPS forecast to $2.23 from $1.53, according to the note.

The brokerage said it reiterated its equalweight rating on the stock and raised its price target to $36 per share from $29.

Price: 41.12, Change: +0.61, Percent Change: +1.49