Parker-Hannifin Corporation (NYSE: PH) has quietly become one of the most dependable industrial compounders in the market. The stock trades near $766/share, up about 20% over the past year, supported by strong execution, expanding margins, and consistent free cash flow.
Recently, the company announced a record start to fiscal 2025, with solid performance in its Aerospace Systems and Motion Technologies segments. Parker also completed the integration of Meggitt, strengthening its position in high-value aerospace components and unlocking synergies across defense and commercial programs. These moves highlight management’s disciplined execution and focus on long-cycle, high-margin markets.
This article explores where Wall Street analysts think Parker-Hannifin could trade by 2028. We have pulled together consensus targets and valuation models to outline the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Minimal Upside
Parker-Hannifin trades around $766/share today. The average analyst price target is $803/share, which points to about 5% upside over the next year. Forecasts stay tight, reflecting steady confidence in the company’s performance:
- High estimate: ~$910/share
- Low estimate: ~$500/share
- Median target: ~$825/share
- Ratings: 14 Buys, 2 Outperforms, 6 Holds, 1 Sell
Analysts see Parker as fairly valued after a strong run. For investors, that means the market already prices in much of the company’s quality and operational consistency. The stock is not a fast mover, but it offers a dependable foundation for portfolios that value stability and solid execution.
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Parker-Hannifin: Growth Outlook and Valuation
The company’s fundamentals look steady and well-balanced:
- Revenue expected to grow about 5% annually through 2028
- Operating margins near 24%
- Shares trade at 21x forward earnings, slightly above historical averages
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 21x forward P/E suggests ~$768/share by 2028
- That implies roughly 0% total return, or 0.1% annualized
These figures suggest Parker is built for consistency rather than rapid growth. The valuation already reflects much of its strength, leaving limited room for multiple expansion.
For investors, Parker-Hannifin remains a long-term compounder focused on operational excellence and cash flow generation. It is not a bargain, but it continues to reward patience with dependable performance and disciplined management.
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What’s Driving the Optimism?
Parker-Hannifin remains a standout in the industrial sector, supported by strong demand in its aerospace and motion systems businesses. The company continues to benefit from long-cycle defense and commercial aircraft programs, while automation and engineered materials drive steady recurring revenue.
Management’s focus on integration, cost discipline, and margin expansion has proven effective, with the Meggitt acquisition strengthening its aerospace portfolio and supporting long-term growth.
For investors, these strengths suggest Parker is not just maintaining its lead but quietly reinforcing its foundation for long-term compounding through steady earnings and consistent free cash flow.
Bear Case: Valuation and Growth Ceiling
Even with these positives, Parker-Hannifin’s valuation already reflects much of its strength. The stock trades at a premium to most industrial peers, which means expectations are high while growth prospects remain steady rather than spectacular.
If industrial activity cools or profit margins stop improving, investors could see muted returns from here.
For investors, the main risk is paying too much for stability. Parker is a world-class operator, but with the stock already priced for perfection, any slowdown in growth or earnings momentum could weigh on future performance.
Outlook for 2028: What Could Parker-Hannifin Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 21x forward P/E suggests Parker-Hannifin could trade near $768/share by 2028. That would represent roughly flat total returns, or about 0.1% annualized, from today’s price near $766/share.
While this outlook highlights Parker’s financial resilience, it also signals that much of the good news is already priced in.
For investors, Parker looks like a premium-quality industrial compounder rather than a value opportunity. It remains attractive for those seeking stability, income, and balance sheet strength, but the upside appears limited unless end markets or margins outperform expectations.
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