On Tuesday, BofA Securities updated its assessment of Oshkosh Corporation (NYSE: NYSE:OSK) by increasing the price target on the company’s shares.
The new price target is set at $112.00, marking an increase from the previous target of $108.00. Despite the price target hike, the firm maintained an Underperform rating on Oshkosh's stock.
Oshkosh has reported a robust beginning to the year 2024 with a strong first quarter that concluded on April 25th. Following this positive performance, the company has revised its full-year adjusted earnings per share (EPS) guidance upward to $11.25, from the earlier projection of $10.25. This adjustment reflects the company's confidence in its financial outlook for the year.
BofA Securities highlighted certain aspects of Oshkosh's business that could potentially drive EPS growth beyond the non-residential construction sector, specifically within the Vocational segment.
Moreover, the firm noted from its conference on May 14th that there remains a tightness in the market for telehandlers, which are telescopic handlers used for lifting applications in construction and agriculture.
However, the firm also expressed concerns regarding the potential risk of a downturn in the aerial work platform market, referred to as an 'Access air pocket', in 2025. This concern is based on the anticipation of reduced capital expenditure budgets in the equipment rental sector.
Comparing Oshkosh to its peers in the Access equipment market, BofA Securities believes that Oshkosh has more cyclical resilience in its non-Access business units, such as Vocational and Defense, as opposed to Terex Corporation's (NYSE:TEX) Material Processing (MP) segment.
This assessment contrasts with the market dynamics from two years prior, where the roles of these companies in terms of cyclical resilience were seen as inverse.
InvestingPro Insights
InvestingPro data reveals that Oshkosh Corporation (NYSE: OSK) is currently operating with a healthy market capitalization of $7.55 billion and a Price to Earnings (P/E) ratio of 10.54 based on the last twelve months as of Q1 2024. This P/E ratio suggests that the stock may be reasonably valued in comparison to industry standards. Additionally, the company's revenue growth of 15.45% over the last twelve months and an impressive 58.8% one-year price total return signal strong financial health and investor confidence.
Two notable InvestingPro Tips for Oshkosh include the company's consistent dividend growth, with dividends having increased for 11 consecutive years, and the positive sentiment from analysts, with 11 analysts revising their earnings upwards for the upcoming period. These factors, especially the analyst revisions, may indicate a bullish outlook on the company's future performance. For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 6 more tips available on InvestingPro's platform for Oshkosh Corporation.
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