In a report released yesterday, Andrew Obin from Bank of America Securities maintained a Buy rating on Parker Hannifin (PH – Research Report), with a price target of $715.00.
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Andrew Obin has given his Buy rating due to a combination of factors surrounding Parker Hannifin’s strategic acquisition of Curtis Instruments. The acquisition, valued at approximately $1 billion, is expected to be accretive to Parker Hannifin’s adjusted earnings per share in the first full year after closing. Curtis Instruments’ products complement Parker’s existing portfolio, particularly in the Electronic Motion and Controls Division, which is anticipated to create strong synergies and enhance operational efficiency.
Moreover, the acquisition aligns with Parker Hannifin’s ongoing strategy to pursue larger-scale mergers and acquisitions, as evidenced by their recent history of significant deals. The company is poised to benefit from cost synergies, estimated to reduce the cost base by about 12%, translating to approximately $32 million in cumulative savings. These strategic moves, along with a projected high-single-digit return on invested capital by 2028, underpin Obin’s confidence in Parker Hannifin’s growth prospects and justify the Buy rating.
In another report released on June 26, KeyBanc also reiterated a Buy rating on the stock with a $735.00 price target.
Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PH in relation to earlier this year.