Parker Hannifin (PH.N) The Long Runway Ahead for Continued PH Aerospace Growth

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Parker Hannifin (PH.N) The Long Runway Ahead for Continued PH Aerospace Growth

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21 Jul 2026 20:32:07 ET │ 11 pages

Parker Hannifin (PH.N)

The Long Runway Ahead for Continued PH Aerospace Growth

CITI'S TAKE

Buy We had an opportunity to meet with PH Management at the Farnborough

Air Show and we come away bullish regarding PH’s good positioning to Catalyst Watch: Upside, expires 06-SEP-26

continue to generate significant growth in Aerospace within PH’s longer Price (21 Jul 26 16:00) US$959.58

term algorithm (high single digit organic) with further margin expansion. Target price US$1,141.00

Ultimately, we think PH continues to enlarge its “seat at the table” with Expected share price return 18.9%

PH now a top five supplier to essentially all major airframe customers. Expected dividend yield 0.9%

Past acquisitions such as Meggitt and recent (announced) acquisitions Expected total return 19.8%

such as Circor Aerospace should give PH an even bigger seat on future

Market Cap US$120,990M aviation platforms such as next gen single aisle, and together with what

we think should be scale economies as PH ramps up commercial OE sales

as well as a still favorable pricing/stable supply chain environment, we see

PH Aerospace continuing to be one of the major drivers for PH to continue Andrew KaplowitzAC

to record double digit EPS growth moving forward. +1-212-816-0642

andrew.kaplowitz@citi.com

Additional Thoughts: Jose Sulca Flores

Defense should remain solid for PH – Defense has been strong for PH so comps jose.alonso.sulcaflores@citi.com

aren’t easy, but backlog remains strong. Most of PH’s Defense business is “long

cycle” (9-15 months), so we see steady growth in the business continuing in FY27

somewhat similar to what PH should report in FY26Q4 (likely in our view mid-single