Parker-Hannifin (PH), mcap=$35.7bn, price $273 vs $276

Pitch: Manufacturer of motion control products for industrial applications at 14x NTM earnings. The thesis is mostly based on investor perception change as a company’s portfolio transitions from short-cycle industrial to longer-cycle businesses with a significant portion of sales stemming from recurring aftermarket sales. Further growth drivers include recovery in auto and aerospace as well as exposure to clean technology and electrification applications.

Valuation: PH trades at 14x NTM earnings. New 2027 targets imply $30 EPS and attractive margins, deserving of a higher 17x multiple, resulting in >$500/share (should be trading in mid-$300s today).

Exp. gain: +90% to $500+ by 2025

Full PH write-up (free guest account required):

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