Goldman Sachs Upgrades Oshkosh Corporation (OSK) Stock to Buy

Oshkosh Corporation (NYSE:OSK) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Goldman Sachs analyst Jerry Revich upgraded the company’s stock to “Buy” from “Neutral” with a price objective of $131, up from the prior target of $124, as reported by The Fly. The firm noted that consensus estimates for Oshkosh Corporation (NYSE:OSK) embed tariff risks, mentioning that it anticipates improvement in the Transportation margins, thanks to the completed contract renewals for tactical wheeled vehicle products after a period of underperformance post-COVID.

Furthermore, the firm noted that the used construction inventories have been declining YoY for the first time since late 2022. Also, the new equipment destocking is more than halfway complete. With a healthy foundation and clear vision, Oshkosh Corporation (NYSE:OSK) continues to target healthy revenue and adjusted EPS growth over the upcoming 3 years. Oshkosh Corporation (NYSE:OSK) highlighted that multi-year backlogs as well as existing contracts in its Vocational and Transport segments aid ~50% of targeted revenue growth in 2028.

The company is expected to capitalize on critical industry trends and anticipates solid, long-term demand for its products to fuel success. Investment management company First Pacific Advisors released its Q1 2025 investor letter. Here is what the fund said:

“Oshkosh Corporation (NYSE:OSK) is a specialty vehicle manufacturer that operates across three segments – Access Equipment (JLG lifts and telehandlers), Vocational (fire trucks, airport equipment, dump trucks, etc.), and Defense (which includes the new US Postal Service trucks). The Fund has owned shares of OSK since its inception in 2002 but has added and trimmed since then. OshKosh has a long history of earnings growth and strong returns on capital. In 2024, OSK shares declined because of lowered expectations for JLG earnings. The company’s leverage is low, it has a long and successful operating history, and its shares trade at roughly eight times our estimate of normal earnings. We have incrementally added to our position.”

Oshkosh Corporation (NYSE:OSK) is engaged in designing, manufacturing, and servicing heavy-duty specialty vehicles and equipment used throughout several industrial sectors.

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Disclosure: None. This article is originally published at Insider Monkey.