The Cleveland, OH-based company is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a variety of mobile, industrial and aerospace markets.
Parker is a "highly diversified motion and control company," Barclays said.
"Said more plainly, PH produces parts that together create hydraulic, pneumatic, and electromechanical power systems (for airplanes, factory/construction equipment, etc.). Parker has high quality assets, plays in niche markets, and has an extensive and captive distribution network (high barriers to entry)," the firm said in an analyst note.
However, Barclays struggles to see upside to the stock after its recent rally, up 28% off January lows. There is upside to numbers if the macro recovery is stronger and sooner than expected, but the firm continues to see a pushed out recovery closer to 2018 than 2017.
While the diverse company plays in just about every major end market, revenues are short and early-cycle and therefore cyclicality and earnings volatility is greater than at an average company, Barclays noted.
Shares of Parker are dropping by 1.27% to $109.67 at the start of trading on Friday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
This is driven by a few notable strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. The team feels its strengths outweigh the fact that the company shows low profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PH