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UPDATE: Bank of America Initiates Parker-Hannifin with Buy on Expected Positive EPS

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UPDATE: Parker Hannifin Posts Downbeat FQ4 Earnings, Issues Weak FY15 Outlook

In a report published Monday, Bank of America analyst Andrew Obin initiated coverage on Parker-Hannifin Corporation (NYSE: PH) with a Buy rating and $112.00 price target.

In the report, Obin noted, “We initiate on Parker Hannifin with a Buy rating. The company is an industrial supplier of hydraulics, motion and fluid control systems and components to diversified end markets. In our view, the Street underestimates the potential earnings upside in FY14-15 from continued industrial production recovery and the end of de-stocking in the US, coupled with European industrial production stabilization at trough levels, and improving profitability in the Aerospace segment as we pass the peak of the R&D spending cycle. We view PH's premium FCF generation and asset returns as the main achievement of its lean journey under its Win strategy. We highlight PH's more stable FCF through the cycle relative to its more lumpy EPS performance, which we think is not fully recognized in its valuation. We expect the company to remain disciplined with cash redeployment through a mix between buyback program and bolt-on acquisitions.”

Parker-Hannifin Corporation closed on Friday at $94.05.

Latest Ratings for PH

DateFirmActionFromTo
Sep 2014Buckingham ResearchInitiates Coverage onBuy
Aug 2014ISI GroupUpgradesNeutralBuy
Aug 2014CitigroupMaintainsBuy

View More Analyst Ratings for PH
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Initiation Analyst Ratings

 

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