On Friday, DA Davidson signaled a positive shift in its stance on Oshkosh Corporation (NYSE:OSK), raising the stock's rating from Neutral to Buy and increasing the price target to $130 from the previous $122. The decision followed recent investor meetings in Minneapolis, MN, where Oshkosh's CFO Mike Pack and Sr. VP of IR Pat Davidson presented the company's outlook.
Da Davidson expressed growing confidence in Oshkosh's financial prospects, particularly for the year 2025, and provided insights into the company's expectations for 2026. The upgrade is rooted in a more optimistic view of several of Oshkosh's business segments.
The Access segment is noted for its strong demand, with customers already planning for 2025. The Defense segment is highlighted for the potential upside from the Next Generation Delivery Vehicle (NGDV) program, which may have been previously underestimated.
In addition to the positive outlook for the Access and Defense segments, DA Davidson also pointed out the strength in the Vocational segment. Here, the firm observed a high level of orders and visibility for Fire & Emergency (F&E) services, which is expected to continue through 2026. This comprehensive assessment suggests that Oshkosh has the potential to return to its previous performance highs.
The analyst's commentary underscores the firm's reassessment of Oshkosh's business trajectory. The company's representation at the investor meetings appears to have effectively conveyed a strong future outlook, leading to the upgraded rating and price target. This shift in perspective reflects DA Davidson's conviction in Oshkosh's growth and stability across its key business areas.
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