Benzinga | Sep 21, 2021 07:47AM EDT

Jefferies Downgrades Oshkosh To Hold Citing Defense Headwinds

* Jefferies analyst Stephen Volkmann downgraded Oshkosh Corp (NYSE:OSK) to Hold from Buy with a price target of $105 (implying a downside of 1.76%), down from $150.

* Volkmann sees near-term delivery headwinds and medium-term headwinds to both the company's sales and margins in defense. Supply chain constraints across the industrial space are pressuring volumes and offsetting strong demand.

* The analyst adds that Oshkosh's recent contract wins in defense are not likely to generate significant revenue in fiscal 2022 and lowers estimates to below consensus through fiscal 2023.

* Recently, Oshkosh entered a strategic partnership and invested in Carnegie Foundry to accelerate innovation in autonomy and robotics.

* Price Action: OSK shares closed lower by 1.21% at $106.86 on Monday.