![]() He said he believes the USPS will ultimately need to buy toward the high end of its 160,000-vehicle range to adequately meet capacity needs. Raymond James analyst Felix Boeschen reiterated his outperform rating on Oshkosh while raising his price target to $125 from $100. In contrast, shares of Oshkosh rose 3.0% to a record close of $112.95, after rallying 6.1% on Tuesday on news of the contract win. He expects earnings before interest, taxes, depreciation and amortization, or Ebitda, to turn positive in 2023, a year later than previously projected. He said that while the company’s C1000 EVs have “compelling” total-cost-of ownership (TCO) characteristics, and although the company has a backlog of about 8,000 vehicles, Rusch said “estimates need to move lower” as USPS expectations are removed. Postal Service contract entirely, and facing a choppy supply-chain situation due to COVID-19–related headwinds, we are stepping to the sidelines,” Rusch wrote in a note to clients. Lafferty’s Jaime Perez as the most bullish analysts on Wall Street, according to FactSet data. Rusch removed his $29 stock-price target, which had tied him with R.F. Meanwhile, Oppenheimer’s Colin Rusch downgraded Workhorse to perform from outperform. Workhorse said Wednesday it asked the USPS for “additional information” about the contract award, and plans to “ explore all avenues that are available to non-awarded finalists in a government bidding process.”Ĭowen’s Osborne said there may be “political intervention” from the Biden administration, given that the decision goes against President Joe Biden’s executive order in which federal agencies were directed to procure carbon-pollution-free electricity and clean, zero-emission vehicles. “Coming away with nothing is a surprise however, we note we likely have political variables at play here - a legacy Trump holdover as postmaster general of the USPS (Louis DeJoy) and two politically sensitive states (Wisconsin for Oshkosh and Ohio for Workhorse),” Osborne wrote. That suggests there’s a possibility the award could change, or be split. Osborne said politics may have played a role in the USPS’s decision. ![]() He acknowledged that Workhorse has had a “spotty” history of execution in the past but said the company is now on much more of a solid financial footing. “While we were not modeling success in the USPS, we had anticipated Workhorse would play a role, especially given the administration’s stance around government fleets being zero emission,” Osborne wrote. He kept the outperform rating he’s had on the stock for at least the past three years but cut his stock-price target to $18 from $25. Said its Oshkosh Defense subsidiary was awarded an “indefinite delivery, indefinite quantity” contract to help modernize the USPS’s delivery-vehicle fleet, by supplying between 50,000 and 165,000 battery-electric vehicles (BEV) and fuel-efficient internal combustion engine (ICE) vehicles over a 10-year period.Ĭowen analyst Jeffrey Osborne wrote in a note to clients that he was “shocked” at the Workhorse setback. Late in Tuesday’s trading session, Oshkosh Corp.
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