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Strategic Portfolio Transformation and Win Strategy 3.0 Drive Parker Hannifin’s Buy Rating

Strategic Portfolio Transformation and Win Strategy 3.0 Drive Parker Hannifin’s Buy Rating

Andrew Kaplowitz, an analyst from Citi, maintained the Buy rating on Parker Hannifin (PHResearch Report). The associated price target is $795.00.

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Andrew Kaplowitz has given his Buy rating due to a combination of factors including Parker Hannifin’s strategic portfolio transformation and its ability to balance short and long-cycle exposures, which is expected to yield moderate single-digit organic growth through FY27. The company’s Win Strategy 3.0 is anticipated to drive significant margin improvements, alongside a flexible capital deployment strategy, positioning PH for substantial earnings growth over time.
Despite potential risks such as cyclical pressures, a subdued international economic outlook, and integration risks from larger M&A deals, Kaplowitz believes the company’s strong cash generation and favorable aerospace industry trends support its growth prospects. He sets a target price of $795, reflecting a 27x multiple on the FY26 EPS estimate of $29.45, expecting a notable earnings growth acceleration, particularly with a PMI recovery projected in the latter half of 2025.

In another report released on January 31, Wells Fargo also assigned a Buy rating to the stock with a $775.00 price target.

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