Citigroup Upgrades Parker-Hannifin to 'Hold'
Citigroup upgraded Parker-Hannifin (PH ) to hold from sell.
Analyst David Raso says he's upgrading Parker-Hannifin due to the results of a proprietary survey of distributors in September. He says the survey suggests this industrial-recovery-play stock is about to see North American orders turn positive year over year, albeit modestly, for the first time since November when orders are reported after the close on Friday.
Raso also notes Parker-Hannifin's stock has been the biggest group laggard among his mid-cap and large-cap names year to date. Restraining his enthusiasm is his cautious view on the company's margin recovery potential and current valuation. He upped his $43 target to $47.