Oshkosh Eyes a $1 Billion British Armored Car Contract

Oshkosh Eyes a $1 Billion British Armored Car Contract

Merrill Lynch tempted fate, and fate won.

Last week, analysts at Bank of America's Merrill Lynch brokerage unit announced they were downgrading Oshkosh (NYSE: OSK) stock all the way to sell, and cutting their price target on the stock to $60.

According to Merrill, a "lack of new ... orders for" heavily armored "MRAP" trucks for 2018 delivery would create an "air pocket" in Oshkosh's revenue stream. Sales could come in as much as 15% below the high point of Oshkosh's $2 billion in expected 2018 earnings. Deprived of this source of high-profit margin sales, Oshkosh's earnings would tumble.

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Source: Fool.com