Analysts Cut Oshkosh PT After Negative Pre-Announcement

  • Deutsche Bank analyst Nicole DeBlase lowered Oshkosh Corp's OSK price target to $127 (implying an upside of 27%) from $136 and maintained a Buy rating on the shares following the "big" negative pre-announcement.
  • Baird analyst Mircea Dobre lowered Oshkosh's price target to $131 (implying an upside of 31%) from $145 and maintained an Outperform rating on the shares.
  • Dobre mentions that the company's negative pre-announcement reflecting its supply chain challenges as the magnitude exceeded his recent estimate cuts.
  • Dobre adds that the demand remains solid, but its execution appears to be lagging peers with improvement needed in 2022 for the shares to regain momentum and premier OEM status.
  • Recently, the company provided a business update and expects to report Q4 revenues and EPS lower than what it discussed on its Q3 conference call, citing supply chain, logistics disruptions, material, and freight cost inflation.
  • Preliminarily, the company sees Q4 sales of ~$2.05 billion vs. consensus of $2.15 billion, and Adjusted EPS of $0.90 - $0.95 vs. consensus of $1.81.
  • Oshkosh expects current challenges to persist into the Stub Period of October 1, 2021, to December 31, 2021.
  • The company's Board of Directors approved a change in the fiscal year to a calendar year starting on January 1 and ending on December 31, effective for the fiscal year beginning January 1, 2022.
  • Price Action: OSK shares are trading lower by 1.24% at $99.6 on the last check Monday.
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