- Oshkosh (OSK +2%) is higher after Dougherty & Co. initiates coverage with a Buy rating and $80 price target, seeing the stock as well-positioned to outperform the broader machinery sector given its exposure to government business.
- OSK is better suited than peers going into a potential downturn, thanks to recent restructuring actions and a focus on operational excellence, the firm believes.
- Given the status of the JLTV contract, among other base businesses, Dougherty thinks OSK's earnings profile is at the upper end of the peer group.
- Dougherty also starts Modine Manufacturing (MOD +1.5%) with a Buy rating with a $13 price target, saying investors should capitalize on the recent price decline following FQ1 earnings as the company's turnaround story continues to materialize.
- The firm also initiates Manitowoc with a Neutral rating.
- OSK's average Sell Side Rating is Outperform, its Seeking Alpha Authors Rating is Bullish, and its Quant Rating is Very Bullish.