Fed Governor Adriana Kugler to resign
On Tuesday, Mizuho (NYSE:MFG) Securities reiterated its Outperform rating on Parker-Hannifin (NYSE:PH) shares, maintaining a price target of $715.00. The affirmation comes despite observations of ongoing softness in the industrial sector. Currently trading at $650.78, the stock has analyst targets ranging from $500 to $850, reflecting diverse market perspectives. According to InvestingPro analysis, Parker-Hannifin maintains a "GOOD" overall financial health score, positioning it well within the machinery industry. Mizuho’s analyst pointed to Enerpac’s recent financial results as a partial indicator for Parker-Hannifin’s performance, noting an increase in organic revenue growth within Enerpac’s Industrial Tools & Services (IT&S) segment.
Enerpac, which is not covered by Mizuho, reported a positive shift in its second fiscal quarter of 2025, ending February, with IT&S gaining 4.2%, a recovery from a 1% decline in the first fiscal quarter. Product sales rose by 4.4%, and service revenue increased by 3.4%. The IT&S performance is considered a directional indicator for Parker-Hannifin’s North American Industrial business, with a strong correlation coefficient of approximately 0.75.
Despite the positive signs from Enerpac, current consensus forecasts for Parker-Hannifin’s North American Industrial organic growth in the third fiscal quarter stand at a decline of 2.3%. Enerpac’s two-year growth rate improved to 7% from 5%, but the company’s outlook remains cautious, citing macroeconomic uncertainty and the potential for reduced economic growth due to trade issues. As a prominent player in the machinery industry with a market capitalization of $83.8 billion, Parker-Hannifin has demonstrated resilience through its 55-year streak of consecutive dividend payments. Discover more insights about Parker-Hannifin’s market position and 12+ additional exclusive ProTips with InvestingPro.
Parker-Hannifin’s order growth turned positive at 3% in the second fiscal quarter, marking a change after seven quarters of flat or negative trends. This increase was primarily driven by the company’s longer-cycle businesses, particularly within Aerospace. The company maintains strong fundamentals with a healthy 36.25% gross profit margin and robust return on equity of 26%. However, the analyst noted that Parker-Hannifin has experienced acute weaknesses, especially in the off-highway and automotive sectors. Despite these challenges, Mizuho’s stance on Parker-Hannifin remains positive with the reaffirmed Outperform rating and stable price target. For comprehensive analysis including Fair Value estimates and detailed financial metrics, access the full Pro Research Report available on InvestingPro.
In other recent news, Parker-Hannifin Corporation reported strong fiscal performance with earnings per share surpassing expectations, despite revenue slightly missing consensus estimates. This robust margin performance prompted Stifel analysts to raise their price target for Parker-Hannifin stock to $691, maintaining a Hold rating. Citi analysts also initiated coverage with a Buy rating and set a higher price target of $795, citing the company’s strategic portfolio transformation and expected mid-single-digit organic growth through fiscal year 2027.
Additionally, Parker-Hannifin successfully issued €700 million in senior notes, which will be used to repay existing debt maturing in 2025. The notes carry an annual interest rate of 2.900%, with the first payment due in 2026. Moody’s Ratings upgraded Parker-Hannifin’s senior unsecured ratings to A3, reflecting confidence in the company’s operating margin expansion and credit metrics.
The company’s management expressed optimism for revenue growth in the upcoming fiscal quarters, supported by a recent 5% increase in orders. Despite facing some challenges like foreign exchange headwinds, Parker-Hannifin remains focused on its WIN strategy and Lean System to enhance productivity. These developments indicate a positive outlook for Parker-Hannifin as it continues to navigate the global manufacturing landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.