J.P. Morgan is raising its YE 2011 PT on Parker-Hannifin Corporation PH to $97 and is upgrading its rating on the stock to Overweight from Neutral.
“In addition, if history is any predictor, we expect investors to rotate out of high-beta cyclicals into more diversified, lower beta names such as PH-- as is typical at this point in the cycle,” J.P. Morgan writes.
“At 14.2x CY'11 EPS PH is trading at a discount to the average for diversified industrial stocks of 16.1x CY'11 EPS and also at a discount to historical peer average multiple of ~16.4x.
“We believe that PH should trade inline with its peers and as a result, we are raising our year-end 2011 price target from $81 to $97 which represents a forward P/E mid-cycle multiple of 15x on our revised CY'12 estimate of $7.08, discounted back to YE 2011.”
Parker-Hannifin Corporation currently trades at $88.43.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in