Oshkosh Defense Contract and Divergent Analyst Views Shape Stock Outlook

Oshkosh US6882392011

Shares of Oshkosh Corporation received a boost following the announcement of a significant new military contract. However, this positive development was met with a split in analyst sentiment, creating a nuanced picture for the defense and specialty vehicle manufacturer.

The United States Marine Corps has awarded Oshkosh a firm-fixed-price contract valued at $49.2 million. This order involves the modification of armored MTVR trucks into resupply vehicles. The company is scheduled to perform the work at its facilities in Oshkosh, Wisconsin, with completion expected by November 2030.

Wall Street's Mixed Messages

Coinciding with the contract news, prominent financial firms issued updated research notes with contrasting adjustments:
* Analysts at Morgan Stanley reaffirmed their "Equal-Weight" rating on the stock but raised their price target to $147 from $136.
* Argus Research maintained its "Buy" recommendation yet reduced its price target to $160 from $175.

The consensus among the 14 market experts covering Oshkosh remains a "Buy." The average price target across all analysts currently stands at $145.50.

Financial Performance and Forward Guidance

This latest Marine Corps order reinforces Oshkosh's stable role as a defense supplier. The mixed analyst reactions reflect a detailed assessment of the current market environment. The company's most recent earnings report, released on October 29, showed earnings per share that exceeded expectations, though revenue came in slightly below forecast.

Management has confirmed its full-year 2025 guidance, projecting adjusted earnings per share in the range of $10.50 to $11.00. Investors are now looking ahead to the next key financial update: the release of the company's fourth-quarter and full-year 2025 results, anticipated for late January or early February.