Goldman Sachs cited improving transportation margins and a decline in construction equipment capital stock, which is its “favored lead indicator” for future capital expenditures, as key reasons for its upgrade on Oshkosh.
Goldman Sachs upgraded Oshkosh Corp to ‘Buy’ from ‘Neutral’ and raised its price target to $131 from $124, citing improving transportation segment margins driven by recent contract renewals for tactical wheeled vehicles.
The segment had seen margin underperformance since the pandemic.
Goldman Sachs analyst Jerry Revich also pointed to declining construction equipment capital stock, which he referred to as a “favored lead indicator” for used equipment values and future capital expenditures.
The research firm noted that tariff risks were now largely embedded in consensus expectations.
The upgrade follows Oshkosh’s recent financial updates and contract wins in its transport business.
The stock is up over 14% in June, driven by positive sentiment following the company’s June 5 Investor Day presentation, during which Oshkosh provided 2028 financial guidance of $13–14 billion in revenue, 12–14% operating margins, and $18–22 adjusted EPS.
Citi, Baird, JPMorgan, and Jefferies each increased price targets this month as well, with Baird leading the way to $169 and maintaining an ‘Outperform’ rating.
Citi said Oshkosh’s 2028 outlook “beat across the board,” while JPMorgan said the achievability of the targets depends on the product mix and ramp-up in next-gen delivery vehicles.
BofA noted that management’s EPS target implied a 24% CAGR, which it described as “not exactly conservative,” but found elements of the plan “encouraging.”
Meanwhile, Jefferies said the revenue growth targets are ahead of its forecast and would require a recovery in Access and a more supportive macro backdrop.
In June, Oshkosh was awarded a $792 million contract extension for its Medium Tactical Vehicles A2 by the U.S. Army.
On Stocktwits, retail sentiment was ‘bearish’ amid ‘normal’ message volume.
The stock has risen 21.3% so far in 2025.
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