UPDATE: Goldman Sachs Upgrades Parker Hannifin To Buy On De-Risked FY2014 EPS

In a report published Friday, Goldman Sachs analyst Joe Ritchie upgraded Parker Hannifin Corp PH from a Sell rating to a Buy rating and raised the price target from $107.00 to $135.00. In the report, Goldman Sachs says "We upgrade PH to Buy from Sell as we believe FY14 has been largely derisked, FY15 consensus estimates are too light and strong FCF generation will likely spur attractive capital deployment. In addition, while our price target does not assume relative multiple expansion, we believe the current discount could narrow due to stronger earnings growth over the next two years. Given the reset on FY14 EPS and improving orders, we believe downside risk is limited at this point; hence, our upgrade. Since being added to our Americas Sell list on March 20, 2013, PH is +26.8% vs. the S&P +16.0% vs. coverage +19.1% (past 12 months: +41.8% vs. the S&P +26.8% vs. coverage +34.5%)." Parker Hannifin closed on Thursday at $116.51.