Oshkosh (OSK) PT Raised to $109 at Bernstein SocGen Group

Bernstein SocGen Group analyst Chad Dillard raised the price target on Oshkosh (NYSE: OSK) to $109.00 (from $91.00) while maintaining a Market Perform rating.

The analyst commented: "OSK is continuing to evolve into an Industrial Tech company and is organizing its product portfolio to improve productivity in the airport, neighborhood and jobsite of the future. During the Investor Day, this technology focus combined with better end market growth, increased capacity and higher margins is poised to drive cycle over cycle earnings growth (implied CAGR of 22% between 25 and 28) and less cylicality. Below are key building blocks to the strategy:

Access Equipment is poised to grow revenues from $4B in ‘25 to $5.5B in ‘28 and margins from 13% to 15% at midpoint. The growth is driven 2/3s by market recovery which assumes demand somewhere between mid cycle and peak and the remainder through innovation. OSK laid out 3 innovation drivers:1) expanding into the ag channel, with a focus more on the barn instead of the farm. The AUSA acquisition helps OSK achieve a better position in this space. Even though the ag channel still requires a build out, Mgmt indicated that OSK is signing up new dealers every month and partnering with dealer network of ag partners such as John Deere. 2)Greater expansion of the telehandler business. Access Equipment’s TAM of $23B includes opportunities overseas in Europe ($9B) and China ($4B), which have been underpenetrated by OSK. 3) Service across the product lifecycle with expanded parts distribution, enhancing autonomy function and software services such as ClearSky."

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