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Parker-Hannifin double upgraded to Buy at Goldman

|About: Parker-Hannifin Corporation (PH)|By: , SA News Editor

Parker-Hannifin (PH +1.1%) rises to a 52-week high after Goldman Sachs upgrades shares to Buy from Sell with a $230 price target, up from $180, saying the market has pre-traded the bottom in the Institute for Supply Management index faster this year than usual as cyclical performance has caught up to defensives.

However, Goldman's Joe Ritchie sees room for this trade to continue, noting the ISM has stabilized and cyclicals typically have outperformed for at least the 12 months following stabilization, and thinks PH shares will outperform as the company's multiple has historically re-rated meaningfully within one year of the ISM troughing.

PH's average Sell Side Rating, Seeking Alpha Authors' Rating and Quant Rating are all Neutral.

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