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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