The Department of Defense's proposed fiscal 2020 budget includes modest declines across ground systems, including the Joint Light Tactical Vehicle program, Jefferies analyst Stephen Volkmann tells investors in a research note. The analyst, however, still sees more upside than downside risk for Oshkosh Corporation. Congress will adjust the numbers and estimates for the company still do not include any foreign orders, Volkmann writes. He still expects full-rate production by June, "opening the opportunity for international orders," and believes Oshkosh's defense business remains underappreciated. The analyst keeps a Buy rating on the shares with a $90 price target.

Raises FY24 revenue view to ~$10.7B from $10.4B, consensus $10.3B.