Analyst Angel Castillo of Morgan Stanley maintained a Hold rating on Oshkosh, retaining the price target of $91.00.
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Angel Castillo’s rating is based on a combination of positive financial performance and some underlying concerns. Oshkosh exceeded expectations with its second-quarter adjusted earnings per share and raised its full-year outlook, indicating a strong financial position. The company also reported better-than-expected operating income margins and free cash flow guidance, which are positive indicators for investors.
However, despite these strong financial results, there are concerns that justify the Hold rating. The backlog in the Access segment has declined, and there are higher sales discounts impacting sales in this area, which could indicate potential challenges in demand. These factors, along with a neutral investor positioning and outstanding questions about end-market demand, contribute to a cautious outlook, leading to the Hold recommendation.