Avondale Initiates Parker-Hannifin, Says Co. Has 'Ample Firepower On The M&A Front'

Parker-Hannifin Corp PH was initiated Thursday after hours by Avondale Partners. Analyst Igor Maryasis rates Parker-Hannifin at Market Perform with a $120 price target. He believes the company is well positioned for rebound in Diversified Industrials Sector.

Shares of Parker Hannifin have gained just over 25 percent since January's lows. Maryasis said the company is in a healthy financial position given strong cash flows and a stable balance sheet, which primes the company with "ample firepower on the M&A front."

When it comes to a possible driver for outperformance, Maryasis said comparable figures going forward should lead to outperformance after Parker-Hannifin experienced several years of impact to sales growth thanks to unfavorable FX conditions and divestitures.

Maryasis acknowledges the likelihood that a soft macro environment coupled with strong competition in the aftermarket business presents "notable pricing headwinds" for Parker.

Parker-Hannifin closed Thursday's regular session down 0.42 percent to $109.03.