Goldman Sachs Maintains a 'Sell' on Oshkosh (OSK); Raising Estimates on Buyback
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Price: $39.23 -0.1%
Rating Summary:
8 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 24 | New: 24
Rating Summary:
8 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 24 | New: 24
Trade OSK Now!
Goldman Sachs maintains a 'Sell' on Oshkosh (NYSE: OSK) price target of $16.00.
Analyst, Jerry Revich, said, "We raise our 2013-14 EPS estimates to $1.71/$1.39 from $1.40/$1.35 driven by a reduced share count. Consistent with the company’s amended credit agreement we estimate Oshkosh will buy back $500 mn of stock. Although the capital allocation shift to stock buybacks from debt paydown is clearly accretive, this is countered by (1) the US Department of Defense 2013 budget cuts spending on Oshkosh vehicle programs to $450 mn compared to 2013E sales of $3 bn and pre-war spending of less than $500 mn, (2) US construction rental 2013 capex budgets are likely to point to cuts as fleet sizes approach prior cycle highs, utilizations have softened, and managements’ prioritize free cash flow over capex."
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 $26.75 yesterday, with a 52 week range of $14.07-$27.05.
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Analyst, Jerry Revich, said, "We raise our 2013-14 EPS estimates to $1.71/$1.39 from $1.40/$1.35 driven by a reduced share count. Consistent with the company’s amended credit agreement we estimate Oshkosh will buy back $500 mn of stock. Although the capital allocation shift to stock buybacks from debt paydown is clearly accretive, this is countered by (1) the US Department of Defense 2013 budget cuts spending on Oshkosh vehicle programs to $450 mn compared to 2013E sales of $3 bn and pre-war spending of less than $500 mn, (2) US construction rental 2013 capex budgets are likely to point to cuts as fleet sizes approach prior cycle highs, utilizations have softened, and managements’ prioritize free cash flow over capex."
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 $26.75 yesterday, with a 52 week range of $14.07-$27.05.
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