Stifel Keeps Parker-Hannifin (PH) at Hold as Distributor Survey Points to Softer Trends

Parker-Hannifin Corporation (NYSE:PH) is included among the 13 Best Dividend Kings to Buy successful 2026.

On January 16, Stifel expert Nathan Jones reiterated a Hold standing connected Parker-Hannifin Corporation (NYSE:PH) and kept his terms people astatine $869. The telephone followed a distributor survey covering 38 North American distributors, representing astir 11% of Parker’s determination revenue. According to the analyst, feedback from the transmission suggests Parker’s Q2 results came successful a spot softer than earlier expectations, with somewhat weaker income trends and inventory levels. He besides pointed to terms deceleration and somewhat little forecasts for the adjacent 12 months. In presumption of what’s weighing connected demand, distributors highlighted tariffs, section economical conditions, and ostentation arsenic the biggest factors. One encouraging signal, though, is that less distributors present expect a recession wrong the adjacent year.

In different news, Parker made a large strategical determination earlier successful November, announcing plans to get Filtration Group from privately held Madison Industries for $9.25 billion. The woody is aimed astatine strengthening Parker’s presumption successful the aftermarket business, which is an important country for concern companies due to the fact that it centers connected replacement parts, ongoing maintenance, and recurring lawsuit demand. That tends to make steadier gross streams and tin beryllium much profitable than one-time instrumentality sales.

Filtration Group sells aerial and liquid filtration systems to concern customers arsenic good arsenic the heating and cooling markets. Notably, astir 85% of its gross comes from the aftermarket, and the institution expects astir $2 cardinal successful income successful 2025. For Parker, filtration is already a large operator arsenic its filtration and engineered materials conception led the institution successful fiscal 2025, generating $5.81 cardinal successful gross and representing 42.5% of full sales.

The broader taxable present is besides moving successful Parker’s favor. Investor involvement successful filtration, separation, and water-related businesses has been rising arsenic request grows for cleaner aerial and water. Lincoln International Managing Director and Co-Head of Industrials Bobby Reifman, who advised connected the deal, said those markets are seeing beardown attraction from investors for that reason.

Parker said it volition money the acquisition utilizing a premix of caller indebtedness and currency connected hand. The transaction is expected to adjacent wrong six to 12 months, assuming it clears modular regulatory and closing conditions.

Parker-Hannifin Corporation (NYSE:PH) is simply a planetary concern institution focused connected question and power technologies. It designs and manufactures highly engineered products and systems, portion besides supporting customers done its aftermarket work and replacement parts business.