Oshkosh 2025 targets should be revised lower, says Baird

Baird analyst Mircea Dobre keeps a Neutral rating and $100 price target on Oshkosh after its competitor AM General disclosed a $231M order to produce an unspecified number of Joint Light Tactical Vehicle, or JLTV, Family of Vehicles from U.S. Army. While the firm sees little impact on the Oshkosh 2023/24 Defense segment earnings, it believes that its 2025 targets should be revised lower, adding that JLTVs are key in driving volume through legacy Defense facilities. Baird further contends that there may be a need for restructuring or resizing the Defense segment in the coming years.