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Jefferies Maintains a 'Hold' on Oshkosh (OSK); Good, but Not Great

February 1, 2012 1:40 PM EST
OSK Hot Sheet
Rating Summary:
    3 Buy, 3 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Jefferies maintains a 'Hold' on Oshkosh (NYSE: OSK) price target raised from $20 to $26.

Jefferies analyst says, "Decent F1Q although Access and Fire & Emergency margins disappointed. 1Q EPS of $0.042 was ahead of consensus, but included $0.07 of tax benefit. Guidance was tweaked slightly higher on an improved Access outlook."

"Valuation is intriguing, but risks still hard to quantify: OSK is one of the few stocks in our universe trading at the low end of historical norms on EV/sales and EV/EBITDA. In a recovery scenario, we believe the shares could trade in the $30-$35 area based on industry comps and historical ranges -- and on a sum-of-the-parts analysis. However, the near-term outlook is constrained by government spending (defense and municipal), which continues to decline."

Jefferies raises FY12 EPS estimate from $1.30 to $1.55 and FY13 from $2.10 to $2.20.

For an analyst ratings summary and ratings history on Oshkosh click here. For more ratings news on Oshkosh click here.

Shares of Oshkosh closed at $24.28 yesterday, with a 52 week range of $14.07-$40.11.


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