Analyst Michael Feniger from Bank of America Securities reiterated a Sell rating on Oshkosh and increased the price target to $125.00 from $117.50.
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Michael Feniger has given his Sell rating due to a combination of factors impacting Oshkosh’s performance. Despite a strong second quarter with earnings surpassing expectations, Feniger remains cautious about the company’s future prospects. The Access segment, a significant part of Oshkosh’s business, is facing challenges with a substantial drop in backlog and potential pricing pressures due to tariffs and a tough pricing environment.
Additionally, while the Vocational segment shows promise with increased operating profit and backlog, and the company is engaging in share repurchases, these positives are overshadowed by the uncertainties in the Access market. Feniger also notes that while the company’s earnings guidance has been raised, it merely returns to previous levels, suggesting limited growth potential. Consequently, the price objective of $125 is below the current trading price, reinforcing the Sell rating as Feniger remains cautious about the overall market conditions and the company’s ability to navigate them effectively.