UPDATE: Stifel Nicolaus Raises PT on Parker-Hannifin Following Guidance Report
In a report published Wednesday, Stifel Nicolaus analyst Nathan Jones reiterated a Buy rating on Parker-Hannifin (NYSE: PH), and raised the price target from $118.00 to $122.00.
In the report, Stifel Nicolaus noted, “While Parker's quarter and F2014 guidance disappointed, we believe the real story lies in the restructuring plans which the company estimates will take out $80 million of costs in F2015 and should significantly improve profitability in F2015 and beyond. Given our more bullish macro outlook (than Parker) and this almost $0.40 addition from restructuring we find ourselves raising our 2015 earnings estimate by 4% despite the company's softer near term outlook. We also believe these restructuring actions position the company to realize strong incremental margins as markets recover in the future, providing further potential earnings growth. In our opinion investors got it wrong by taking the shares down modestly yesterday as we believe the longer term profit improvement plans provide more benefit than any near term market weakness. Parker Hannifin remains a top investment idea and we reiterate our Buy rating.”
Parker-Hannifin closed on Tuesday at $101.50.
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