Parker-Hannifin (PH) Distributor Survey Shows a Possible Negative Revision Ahead - Stifel

July 1, 2019 7:43 AM EDT
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Price: $312.03 +0.87%

Rating Summary:
    20 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 8
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Stifel analyst Nathan Jones reiterated a Hold rating and $179.00 price target on Parker-Hannifin (NYSE: PH) after completing a survey of 58 Parker-Hannifin North American distributors. The analyst found that distributors expect sales over the next three months to grow +1.2% y/y and of +2.7% over the next 12 months vs. +5.5% in the previous survey.

The analyst believes this demonstrates that growth expectations are narrowing and stated "We expect the bottom end of the range given recent survey trends, negative orders in F3Q19, management expectations of destocking, and no improvement in macro data. Pricing was +240bps y/y (+240bps prior survey), strong pricing recovery, and with commodity costs continuing to moderate we would expect that comparison to decline going forward. We maintain our Hold rating on PH shares and our target price of $179 based on 15x our F2020E EPS (13x cash EPS), with our survey showing continued deceleration in North America and our caution internationally".

For an analyst ratings summary and ratings history on Parker-Hannifin click here. For more ratings news on Parker-Hannifin click here.

Shares of Parker-Hannifin closed at $170.01 yesterday.

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