Update (9:36 a.m.): Updated with Wednesday market open information.
NEW YORK (TheStreet) -- Goldman Sachs increased its 2015 and 2016 estimates on Parker-Hannifin (PH - Get Report) to $8.30 and $9.15, respectively, and set a "buy" rating with a $143 price target. The firm noted the company is seeing lower aerospace R&D spending and higher growth.
The stock was up 0.19% to $125.96 at 9:35 a.m. on Wednesday.
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TheStreet Ratings team rates PARKER-HANNIFIN CORP as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate PARKER-HANNIFIN CORP (PH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PH's revenue growth has slightly outpaced the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.25, which illustrates the ability to avoid short-term cash problems.
- Compared to its closing price of one year ago, PH's share price has jumped by 27.30%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- PARKER-HANNIFIN CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, PARKER-HANNIFIN CORP reported lower earnings of $6.22 versus $7.44 in the prior year. This year, the market expects an improvement in earnings ($6.52 versus $6.22).
- You can view the full analysis from the report here: PH Ratings Report