Parker-Hannifin Corp: Accretive Fundamentals at Discount

研报英文原文证据摘录

Parker-Hannifin Corp: Accretive Fundamentals at Discount

Update

May 21, 2026 05:08 PM GMT

Morgan Stanley & Co. LLCMParker-Hannifin Corp | North America Christopher Snyder, CFA

Equity Analyst

Accretive Fundamentals at Chris.Snyder@morganstanley.comChristine Yao +1 212 761-4470

Research Associate

Christine.Yao@morganstanley.com +1 212 761-4193

Discount Brandon Knutson

Brandon.Knutson@morganstanley.com +1 212 761-4168

Exhibit 1: MS Math on CIRCOR Modeling & PH EPS Accretion Impact

Toby Okwara

Toby.Okwara@morganstanley.com +1 212 761-1693

Parker-Hannifin Corp (PH.N, PH UN)

Multi-Industry | United States of America

Stock Rating Equal-weight

Industry View Attractive

Price target $1,038.00

Shr price, close (May 20, 2026) $859.44

Mkt cap, curr (mm) $110,094

52-Week Range $1,033.92-643.87

Source: Morgan Stanley Research, Company Reports

PH announced it has agreed to acquire the Commercial Aero & Defense business of

CIRCOR for $2.55B, equating to ~23x CY’26 EBITDA pre-synergies or 18x post

synergies (~10% CIRCOR CY’26 sales). Similar to recent PH deals, CIRCOR is in line

w/ PH strategy to transition the business towards more resilient & secular verticals.

We take a positive view of the deal – simply put PH is high-grading its portfolio at

a discount to its own valuation. PH has a long track record of successful M&A

execution & integration – this track record has afforded PH with a premium

multiple which then supports M&A value creation + EPS accretion and that is the

flywheel. CIRCOR fundamentals are both impressive and accretive to PH – CIRCOR

is expected to sustain double digit sales growth over the next several years, well

ahead of PH organic algo of MSD+. CIRCOR is doing a low 40% EBITDA margin

today , a mark that PH believes can be synergized to ~50% and compares very