On June 3, Truist analyst Jamie Cook upped Oshkosh Corporation (NYSE:OSK)’s stock to “Buy” from “Hold,” lifting the price objective to $127 from the previous target of $93, as reported by The Fly.
A worker welding an intricate frame in a factory for heavy construction machinery.
As per the analyst, the company’s stock is the cheapest name in the firm’s machinery coverage universe as it trades at 8.3 times forward earnings and at an enterprise value which is 5.9 times earnings before interest, taxes, depreciation, and amortization, or ~40% discount to the overall machinery group.
Furthermore, the firm opines that the stock’s risk/reward remains attractive considering the strength of its balance sheet and above average visibility aided by backlog in the higher margin Vocational business. Furthermore, amidst discouraging results in Oshkosh Corporation’s defense segment, the firm expects a margin rebound in 2026.
As per the analyst, Oshkosh Corporation can expand into the broader last-mile delivery market and turn its defense unit into a growth engine if the company successfully leverages the USPS platform. As per the firm, Oshkosh Corporation’s earnings are expected to prove more resilient relative to prior downturns.
Oshkosh Corporation stated that vocational segment sales for Q1 2025 rose by $94.4 million, or 12.2%, to $866.8 million as a result of improved refuse and recycling collection vehicle sales volume and improved pricing.
Oshkosh Corporation offers purpose-built vehicles and equipment.
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