UPDATE: Stifel Nicolaus Raised PT to $111 on Parker-Hannifin on Potential Inflection
Stifel Nicolaus reiterated its Buy rating on Parker-Hannifin (NYSE: PH) and increased its price target from $101 to $111.
Stifel Nicolaus noted, "We believe PH shares have yet to price in the potential inflection points we see coming with the shares continuing to trade at a significant discount to the historical average as well as to peers. Parker Hannifin operates in highly cyclical markets and the company has a very good record of consistent cash flow as shown in Exhibit 15. We do not believe the company is adequately rewarded for the consistency of cash flow or its high ROIC. We reiterate our Buy rating and are raising our target price from $101 to $111 as we roll our target price forward to end 2013 and is based on 8x our calendar 2013 EV/EBITDA estimate which equates to 12.9x calendar 2014E EPS."
Parker-Hannifin closed at $84.41 on Friday.
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