Despite "strong" earnings and raised guidance, Kennametal shares have traded off 8% relative to the S&P 500 year-to-date, Jefferies analyst Stephen Volkmann tells investors in a research note. The analyst sees a "compelling" entry point at current share levels. He believes Kennametal can mitigate the impact of higher material and labor costs to earnings through pricing and productivity initiatives. History suggests the company has pricing power, and labor increases are unlikely to be an issue, Volkmann contends. He recommends buying the shares on the recent pullback and keeps a Buy rating on the name with a $60 price target.