Here's Why Oshkosh Price Target Raised At KeyBanc

KeyBanc analyst Ken Newman raised the price target for Oshkosh Corp. OSK to $110 (an upside of 33.3%) from $105 while maintaining the Overweight rating on the shares.
The analyst states that following an eventful 2Q22 earnings season, they are reiterating a bullish view for Equipment Rental and Construction Machinery coverage.
According to Newman, the improving non-res. construction trends should support more resilient earnings outlooks in both 2022 and 2023.
The analyst mentions that an acceleration in mega-project activity could support further upside to consensus estimates in coming years as recently passed federal stimulus packages become more meaningful beginning in 2023.
Newman says he has confidence in underlying conditions, given OSK’s recent operational performance but has less confidence in NT results. In the medium to long term, he has little doubt OSK will get back on track operationally, added the analyst.
Despite recent challenges, the analyst does see structural problems in OSK’s operating model and has increased his estimates on what should be higher revenue and expectations for better margin.
Newman mentions that given idiosyncratic risk around recent performance trends and the upcoming JLG recompete, he is less willing to assume OSK can exceed its “average” multiple in the NT.
Price Action: OSK shares are trading lower by 3.17% at $82.27 on the last check Monday.

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