UPDATE: Stifel Nicolaus Raises PT on Parker-Hannifin on Positive Outlook

In a report published Thursday, Stifel Nicolaus analyst Nathan Jones reiterated a Buy rating on Parker-Hannifin PH, and raised the price target from $104.00 to $118.00.

In the report, Stifel Nicolaus noted, “We have adjusted our forecast for recent currency fluctuations and an improving outlook. The primary reasons for the increase in our estimates are an apparent end to destocking by OEM customers and a stabilization in European manufacturing. Somewhat offsetting these positive trends is the push-out to calendar 2014 of any reacceleration of the Chinese economy. Overall, we feel that the potential exists for some modest restocking which would impact Parker in a positive way providing further upside to our raised estimates. Parker's balance sheet is in a very strong position with net debt to EBITDA of only 0.5x, well below average, allowing the flexibility for Parker to pursue accretive acquisitions or share repurchases. Either action would provide further upside to current estimates. After a difficult last 12 months we believe Parker's markets are generally going to look like they are in ‘early cycle' mode and feel an early cycle multiple is appropriate, therefore we are raising our target price to $118.”

Parker-Hannifin closed on Wednesday at $103.28.

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Posted In: Analyst ColorPrice TargetAnalyst RatingsNathan JonesStifel Nicolaus
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