Sell Rating for Oshkosh Amid Macroeconomic Concerns and Execution Risks

Michael Feniger, an analyst from Bank of America Securities, reiterated the Sell rating on Oshkosh (OSK – Research Report). The associated price target was raised to $103.00.

Michael Feniger has given his Sell rating due to a combination of factors that highlight potential challenges for Oshkosh. Despite the company’s optimistic 3-year target for earnings per share growth, which is largely within their control, there are concerns about the broader macroeconomic environment that could impact these projections. Oshkosh’s past performance, with shares only increasing modestly compared to the broader market, raises questions about the achievability of their ambitious goals.
Additionally, there are significant risks associated with the company’s reliance on the successful execution of their Next Generation Delivery Vehicle (NGDV) production and the broader transportation segment. The anticipated margin improvements require strong execution, and there are concerns about the construction market’s slowdown and rising costs due to tariffs and steel prices. These factors lead to a preference for rental operators over suppliers in the current economic climate, supporting the Sell rating.

According to TipRanks, Feniger is a 5-star analyst with an average return of 11.6% and a 65.91% success rate. Feniger covers the Industrials sector, focusing on stocks such as Caterpillar, CNH Industrial, and United Rentals.