Deutsche Bank upgraded shares of Parker-Hannifin (NYSE:PH) to Buy from Hold, raising the price target to $506 from $462 in a note Thursday.
The firm told investors that they believe Parker Hannifin is increasingly becoming a core holding within Industrials for PMs.
"The company has proven its ability to deliver superior operational execution in many macro environments," the analysts at Deutsche Bank wrote.
"This can certainly be attributed to the company's Win Strategy, but also to significant portfolio change over the past decade, which has created better balance in PH's revenue profile (and brought greater secular growth potential)," they added.
Deutsche Bank also said it has identified two shorter-term catalysts "that can propel continued share price outperformance in the year to come." These are that they believe Industrial orders may have bottomed and that "PH's beat/raise mantra is likely to continue."