Raymond James Cuts Oshkosh's Price Target By ~21% - Oshkosh (NYSE:OSK)

Raymond James analyst Felix Boeschen lowered the price target for Oshkosh Corp OSK to $95 (an upside of 12.5%) from $120 while maintaining the Outperform rating on the shares.
The analyst mentions that 2Q earnings for the machinery group, supply chains, and increasingly demand destruction fears into FY23 continue to dominate investor conversations as backlogs remain well ahead of “normal” levels. Still, rolling macro indicators coupled with rising interest rates are clouding 2023 demand expectations across various equipment.
The supply chain headwinds seem increasingly company-specific (vs. last year) — a thesis likely to begin creeping into go-forward company outlooks this quarter, noted Boeschen.
The analyst believes companies with outsized aftermarket exposure, more resilient end-market dynamics into FY23, and/or company-specific margin improvement stories present the most compelling near-term set-ups.
The analyst believes the long-term story at OSK presents too good of a multi-year opportunity at current share prices.
Between multi-year aerial replacement cycle set to deliver robust volumes through FY25, accelerating volume opportunities in F&E/Commercial, the brewing entrance into the parcel arena (USPS contract), early EV-leadership, further simplification (margin) opportunities across the book, and potential for incremental M&A, the analyst believes OSK’s long-term earnings are under-appreciated.
Price Action: OSK shares are trading higher by 4.61% at $84.22 on the last check Tuesday.

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