Oshkosh Corp. (NYSE:OSK) and Cummins Inc (NYSE:CMI) are Catalyst Call Buy Ideas at Deutsche Bank, while Illinois Tool Works (NYSE:ITW) is a Catalyst Call Sell Idea, the firm revealed Thursday.
Analysts told investors in a note that they see Buy-rated OSK having the potential to "deliver a material EPS beat this quarter (we sit 5% ahead of consensus), as management gets its execution back on track after a difficult 2021-22."
"This is being driven by continued improvement in supply chain constraints, which we believe should allow the company to deliver volume growth above and beyond its current guidance," the analysts added.
In a separate note, the analysts said CMI has the potential for a sizeable EPS beat in 2Q23 "as NA Class 8 production has remained robust QTD."
"We also see the potential for a material raise to the full year, given increasing probability that build rates remain steady through year-end, in contrast to ACT's production for a sharp drop-off in 4Q," said the analysts.
For ITW, which is rated at Sell, the analysts stated that "the company faces increasingly difficult prior year organic revenue comps, coupled with growing evidence of deteriorating short-cycle industrial activity."
"We also see risk of waning price/cost benefits throughout 2023 creating less opportunity for Y/Y margin expansion," they explained.