© Reuters Oshkosh (OSK) cut to Neutral at Goldman Sachs as access equipment risk/reward moves into balance
By Sam Boughedda
Oshkosh Corporation (NYSE:) shares were downgraded to Neutral from Buy at Goldman Sachs on Monday, with analysts maintaining a $94 price target on the stock, stating that access equipment volumes are approaching prior cycle highs.
The analysts believe access equipment risk/reward is “moving into balance” as backlogs are “now at record levels.”
“Our Buy thesis was predicated on a cyclical recovery in Access Equipment and margin recovery across OSK’s portfolio,” said analysts, who added that production rates are approaching prior cycle highs.
“Leading indicators suggest supply is now catching up with demand, as we see evidence of yoy utilization pressure for the rental companies,” they explained.
“However, margin performance has been mixed, with a return to prior cycle margins in Access Equipment anticipated this year but weaker margins in Fire & Emergency and Defense.”