logo
  Join        Login             Stock Quote

Parker-Hannifin (PH) Upgraded to 'Outperform' By BMO Capital, PT Lifted To $94

 November 08, 2012 01:57 PM
 


(By Balaseshan) BMO Capital Markets analyst Dave Shove upgraded rating of Parker-Hannifin Corp. (NYSE: PH) to "outperform" from "market perform" and raised his price target to $94 from $75.

Shove upgraded the stock on a combination of early signs that economic activity seems to be stabilizing and Parker shares are roughly 20 percent above discounting a recession, which doesn't seem likely in the next one to two years.

The analyst upgraded the stock because, in his view, investors are not appreciating the huge longer term improvement in Parker's returns, free cash flow, and operating margins, bringing them within striking distance of the most profitable industrial companies.

[Related -Parker-Hannifin Corporation (PH): How Parker Could Increase Operating Margins]

Shove's price target increases to $94 from $75, or 15 times his below-consensus fiscal 2013 EPS estimate of $6.25. Parker should be one of the earliest companies to feel any economic improvement pulse through orders and earnings within his coverage.

The analyst's revised price target of $94 is based on a more normal mid-cycle price-to-earnings multiple of 15 times as he believe that his $6.25 captures the near-term downside risks. With even moderate global economic growth, 2013 EPS could easily be closer to $7.00 versus his $6.25.

Shove maintained his 2013 and 2014 EPS estimates of $6.25 and $6.85, respectively, despite some early signs of economic stabilization. He believes there are more upside earnings risks than downside potential at current levels.

PH is trading up 1.70 percent at $78.77 on Thursday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageFour Stocks in the Dow Making Fresh 52 Week Lows

“What gets weak tends to get weaker; what gets strong tends to get read on...

article imageGreece And The Cemetery For Your Wealth

The Greek default is merely the opening act of the worst sovereign-debt crisis in history. By the time it read on...

article imageAll Signs Point To Higher Gold Prices

In the face of historic monetary stimulus from nearly every major central bank in the world over the past read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.