Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Goldman Sachs raised its price target on Parker-Hannifin (NYSE:PH) to $804.00 from its previous target while maintaining a Buy rating on the industrial company’s stock. Currently trading at $728.12, near its 52-week high of $745.35, InvestingPro analysis suggests the stock is slightly overvalued at current levels.
The firm cited Parker-Hannifin’s strong quarterly results, which showed a 5% segment EBITA beat compared to consensus estimates, driven by broad-based performance across business segments. With an EBITDA of $4.97 billion and a market capitalization of $93.04 billion, the company maintains strong financial metrics. InvestingPro data reveals 13 additional key insights about Parker-Hannifin’s performance and valuation.
Order trends were positive in North American Industrial (+2%) and Aerospace (+12%) segments, though Industrial International orders flattened after growing 11% in the previous quarter.
Parker-Hannifin initiated fiscal year 2026 earnings guidance of $28.40-$29.40 per share and first-quarter guidance of $6.51 per share, with Goldman Sachs suggesting the first-quarter target could be conservative as it assumes no improvement in Industrial organic growth despite better orders in recent quarters.
Goldman Sachs raised its fiscal 2026 EPS estimate to $29.20, set fiscal 2027 EPS at $32.05, and introduced a fiscal 2028 EPS estimate of $34.95, with the new price target implying approximately 4.5% free cash flow yield for calendar year 2027.
In other recent news, Parker-Hannifin Corporation reported a robust conclusion to its fiscal year 2025, surpassing earnings expectations with an earnings per share (EPS) of $7.15, compared to the forecasted $7.11. The company’s revenue also exceeded projections, reaching $5.2 billion against the anticipated $5.11 billion. This strong performance highlights the company’s effective management and adaptation to market conditions. KeyBanc has responded to these results by raising its price target for Parker-Hannifin to $810 from $790, while maintaining an Overweight rating on the stock. The investment firm noted Parker-Hannifin’s exceptional execution in a challenging industrial environment and its successful leverage of aerospace industry growth. These developments underscore the company’s strategic positioning and resilience in the market. Such achievements are likely to draw further attention from investors and analysts.
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