Deutsche Bank Upgrades Parker-Hannifin To Buy

In a report published by Deutsche Bank, Parker-Hannifin PH is upgraded to Buy.

Deutsche Bank said that, while macro concerns are valid at some level, at just 11x CY12 (mid-cycle) earnings, it believes PH has been unduly punished relative to other cyclical names. “Moreover, fears that FY2H margin guidance is too aggressive look overdone since we will see a seasonal rebound from FY2Q lows and a high mix of distributor sales offers solid protection from raw material inflation. With PH's under-levered B/S providing a free option on M&A tailwinds and 20% total return potential vs. our new $100 TP (from $95), we return PH to our Buy list.”

Parker-Hannifin closed yesterday at $84.96.