Joe O’Dea, an analyst from Wells Fargo, maintained the Buy rating on Parker Hannifin (PH – Research Report). The associated price target remains the same with $630.00.
Joe O’Dea has given his Buy rating due to a combination of factors including Parker Hannifin’s ambitious yet achievable targets for 2029 and their consistent performance. The company outlined a comprehensive guide, projecting a compound annual growth rate (CAGR) for earnings per share (EPS) of over 10%. Parker Hannifin’s management expressed confidence in their ability to continue margin expansion and revenue growth, which has been a consistent trend for the company. Additionally, the company’s WIN Strategy emphasizes continuous improvement and avoiding complacency, a mindset that has historically yielded strong organic growth and operational efficiency.
In detailing the rationale for the Buy rating, O’Dea emphasizes the significant potential for capital deployment, which is expected to contribute approximately 2.5% to the EPS growth forecast. Parker Hannifin’s plans include leveraging mergers and acquisitions as a primary strategy for growth, with management indicating a sizeable range of capital for deployment. Furthermore, the company is well-positioned to benefit from both cyclical improvements in North American industrial demand and broader secular trends, such as electrification and clean technologies. Parker Hannifin’s strategic focus on six core market verticals, which account for over 90% of its revenue, also underpins expectations for sustained growth across multiple sectors.
In another report released today, Barclays also assigned a Buy rating to the stock with a $618.00 price target.
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Parker Hannifin (PH) Company Description:
Ohio-based Parker-Hannifin Corp. manufactures and sells motion and control technologies and systems. The company provides engineered solutions for mobile, industrial, and aerospace markets. It operates through the following segments: Diversified Industrial and Aerospace Systems.
Read More on PH:
- Parker’s Promising Future Highlighted at Investor Day, Win Strategy™ Enables Sustainable Growth, New 5-Year Targets Announced
- Parker-Hannifin price target raised to $590 from $550 at Argus
- Parker-Hannifin price target raised to $611 from $602 at Truist
- Parker-Hannifin price target raised to $550 from $490 at Mizuho
- Parker-Hannifin price target lowered to $618 from $625 at Barclays
