Parker Hannifin slides as S&P 500 notches new record

The industrial giant has underperformed the broader market in recent months, but analysts remain bullish on the stock

Shares of Parker Hannifin (NYSE: PH) fell on Wednesday as the broader market notched another record high. The stock was down about 1% in premarket trading.

The S&P 500 index, meanwhile, rose to a new all-time high on Wednesday, extending its gains from the previous session. The index is now up about 20% year-to-date.

Parker Hannifin has underperformed the S&P 500 in recent months. The stock is down about 10% since the beginning of the year, while the index is up about 20%.

However, analysts remain bullish on the stock. In a recent note to clients, Morgan Stanley analyst Joshua Pokrzywinski reiterated his “overweight” rating on Parker Hannifin and raised his price target from $320 to $350.

Pokrzywinski said that he believes Parker Hannifin is well-positioned to benefit from the recovery in the industrial sector. He also noted that the company’s recent acquisition of CLARCOR will help to boost its earnings growth.

Other analysts have also been positive on Parker Hannifin recently. In a note to clients earlier this month, Citigroup analyst Andrew Kaplowitz reiterated his “buy” rating on the stock and raised his price target from $330 to $340.

Kaplowitz said that he believes Parker Hannifin is a “well-run company with a strong track record of execution.” He also noted that the company’s recent acquisitions have helped to diversify its business and reduce its exposure to the aerospace industry.