Goldman Sachs Upgrades Oshkosh Corporation (OSK) Stock to Buy
Oshkosh Corporation (NYSE:OSK) has caught the attention of analysts as Goldman Sachs has recently upgraded its stock rating from "Neutral" to "Buy." Analyst Jerry Revich set a new price target of $131, increasing it from the previous target of $124.
Goldman Sachs noted that current consensus estimates for Oshkosh Corporation incorporate tariff risks, yet the firm predicts an improvement in transportation margins. This is attributed to the successful contract renewals for tactical wheeled vehicles, especially after a challenging period post-COVID.
In addition, the firm highlighted a significant decline in used construction inventories year-over-year for the first time since late 2022. New equipment destocking is reportedly more than halfway complete, positioning Oshkosh Corporation for robust revenue and adjusted EPS growth in the next three years.
The company anticipates that multi-year backlogs and existing contracts in its Vocational and Transport segments will support nearly 50% of its targeted revenue growth by 2028.
Oshkosh Corporation is strategically poised to capitalize on key industry trends, expecting sustainable long-term demand for its products. Investment management company First Pacific Advisors shared insights from their Q1 2025 investor letter, stating, "Oshkosh Corporation is a specialty vehicle manufacturer that operates across three segments – Access Equipment, Vocational, and Defense. The Fund has owned shares of OSK since its inception in 2002. Despite a decline in 2024 due to lowered expectations for JLG earnings, the company’s robust operational history and low leverage make it a strong candidate for investment."
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