KeyBanc Raises Price Target on Oshkosh (OSK); Says Future Catalysts & Momentum Should Result in Upside

November 12, 2009 7:11 AM EST

KeyBanc maintains a 'Buy' rating on Oshkosh (NYSE: OSK), raises price target from $42 to $46.

KeyBanc analyst says, "Following OSK's announcement Wednesday that the Department of Defense had awarded the Company another 1,000 M-ATVs, bringing the total contract amount to 6,219 vehicles worth $3.15 billion, we are raising our FY10 estimate to $4.10 from $3.70 (please see our notes from October 11 and November 4, in which we highlighted the potential for further M-ATV orders and estimated the accretion would result in $4.00+ in EPS during FY10). We are maintaining our FY11 estimate of $2.64, although we note this could be conservative should OSK garner any high margin parts and service contracts for M-ATV (or other Defense contracts). In our view, positive momentum is likely to remain in the name over at least the next few months due to expected favorable headlines (more below), our opinion that FY10 consensus of $3.54 is too low and ultimately that OSK will be able to drive significant cash flow leading to substantial debt reduction and balance sheet improvement. As a result of these factors, we are increasing our price target to $46 from $42."

To see more analyst ratings on OSK Click Here.

Oshkosh Corporation designs, manufactures, and markets a range of specialty vehicles and vehicle bodies worldwide.

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