Oshkosh upgraded to Buy from Hold at Truist

Truist analyst Jamie Cook upgraded Oshkosh (OSK) to Buy from Hold with a price target of $127, up from $93. Oshkosh is the cheapest name within Truist’s machinery coverage universe, trading at 8.3-times consensus forward earnings, representing a 40% discount to the sector and screening cheap relative its long-term average, the analyst tells investors in a research note. The firm believes the stock’s risk/reward is attractive given strength of the company’s balance sheet, above average visibility supported by backlog in the higher margin Vocational business, and with Defense sales and margins at a bottom. Oshkosh’s earnings should prove more resilient relative to prior downturns, contends Truist. It believes the stock is “too cheap to ignore” and has priced in an “aggressive bear case scenario.”