- Parker-Hannifin (PH -0.7%) is downgraded to Sell from Neutral, and Ingersoll-Rand (IR -0.7%) is lowered to Neutral from Buy at Goldman Sachs, which says the multi-industry group is now trading at a 12% premium to the S&P compared to its typical 5% premium.
- The firm, which has a $92 price target on PH shares, believes investors are pricing in a recovery that it does not expect to materialize, while IR is trading above historical averages at 15.4x P/E; it has a $64 target on IR shares.
- Goldman's top picks in the group are Honeywell (HON +0.1%) and Illinois Tool Works (ITW -0.1%), with respective stock price targets of $126 and $110.