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Investing.com - Stifel has reiterated its Hold rating on Parker-Hannifin (NYSE:PH) with a price target of $709.00, according to a recent analyst note. The machinery industry leader, currently trading near its 52-week high of $720.90, boasts a perfect Piotroski Score of 9 according to InvestingPro data, indicating strong financial health.
The firm surveyed 38 domestic Parker-Hannifin distributors representing approximately 10% of Parker’s Diversified Industrial North America revenue, revealing slightly lower F4Q25 reported results for sales and pricing compared to its previous May survey. This comes as the company maintains strong fundamentals with $19.8 billion in revenue and a healthy 27% return on equity.
Survey data showed sales at -0.1% versus the previous +0.8%, inventory at -0.2% versus -0.8%, and pricing at +350 basis points versus +390 basis points, while next-12-months’ sales and inventory expectations improved to +2.7% from +2.2% and +0.3% from +0.2%, respectively.
Stifel’s Parker North America distributor survey regression model predicts F4Q25 North American organic revenue at -0.9%, compared to Stifel’s organic estimate of -3% and the Street consensus of approximately -2%.
When distributors were asked about factors impacting demand, 61% indicated tariffs, 16% cited local economy, and 8% mentioned other factors, while 21% of surveyed distributors expect a recession in the next 12 months, down from 33% in the May survey. With analyst targets ranging from $500 to $849, investors seeking deeper insights into Parker-Hannifin’s valuation and growth prospects can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Parker Hannifin Corporation reported its first-quarter 2025 earnings, with an adjusted earnings per share (EPS) of $6.94, surpassing analysts’ expectations of $6.72. However, the company’s revenue slightly missed projections, coming in at $4.96 billion against a forecast of $4.98 billion. In a significant development, Parker Hannifin announced its agreement to acquire Curtis Instruments, Inc. for approximately $1 billion in cash, a move aimed at enhancing its electrification capabilities. The acquisition is expected to close by the end of 2025, pending regulatory approvals.
Morgan Stanley (NYSE:MS) analysts initiated coverage of Parker-Hannifin with an Equalweight rating, setting a price target of $700, reflecting the company’s transformation and expansion into long-cycle industrial markets. Meanwhile, Stifel analysts raised the stock’s price target to $670 from $630, maintaining a Hold rating, based on mixed expectations for future sales among distributors. Additionally, Parker Hannifin announced a leadership transition within its Filtration Group, with Robert W. Malone set to retire and Matthew A. Jacobson named as his successor.
These developments highlight Parker Hannifin’s strategic focus on growth through acquisitions and leadership changes, as well as its ongoing efforts to navigate market challenges and capitalize on long-cycle industrial opportunities.
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