Parker-Hannifin (PH) PT Raised to $590 at Argus
Argus analyst John Eade raised the price target on Parker-Hannifin (NYSE: PH) to $590.00 (from $550.00) while maintaining a Buy rating.
The analyst comments "Our rating on Parker-Hannifin Corp. (NYSE: PH) is BUY. In our view, this well-managed company is on track to achieve its long-term goals of raising margins and growing earnings. Over time, we expect it to generate low double-digit EPS growth, driven by 3%-4% revenue growth, margin improvement, and share buybacks. Recent trends had been problematic due to the coronavirus, supply-chain issues, and high inflation. However, the company has realigned expenses in response to lower demand, and as orders pick up, margins are once again widening. A recent acquisition is providing additional margin expansion opportunities, and is altering the company's business portfolio away from shorter cycle opportunities and toward longer-cycle projects aligned with secular trends such as the move toward clean energy. The balance sheet is clean, and the company has an impressive history of raising the dividend - most recently 10% in April. From a technical standpoint, the shares are in a bullish trend of higher highs and higher lows that dates to June 2022. On valuation, compared to the peer group, Parker's multiples are mixed but generally point to undervaluation, especially given the company's long-term track record of performance. Our target price is $590. We think that PH shares are suitable as a core Industrial sector holding in a diversified investment portfolio."