TD Cowen Lifts Parker-Hannifin (PH) PT to $650 Amid Record Performance, Strong Aerospace Backlog.

Core Insights - Parker-Hannifin Corporation is highlighted as a stock to consider before its anticipated split, with TD Cowen raising its price target to $650 from $575 while maintaining a Hold rating [1] - The company reported record-breaking results for both Q4 and the full fiscal year 2025, indicating strong financial performance [1] Financial Performance - Total revenue for the fiscal year reached $19.9 billion, with an adjusted segment operating margin of 26.1%, up 1.2% from the previous year [2] - Cash flow from operations was a record $3.8 billion, and free cash flow amounted to $3.3 billion, representing 16.8% of sales and a 109% conversion rate [2] - Adjusted EPS increased by 7% year-over-year, and the company ended the fiscal year with a record backlog of $11 billion [2] Segment Performance - The Aerospace segment was a significant contributor to the company's success, achieving record sales of $6.2 billion and 13% organic growth for the fiscal year, with a backlog of $7.4 billion [3] - The Industrial segment faced negative organic growth, but its adjusted segment operating margin reached a record 25.1%, an increase of 0.9% [3] Company Overview - Parker-Hannifin Corporation specializes in manufacturing and selling motion and control technologies and systems across various markets, including aerospace and defense, industrial equipment, transportation, energy, and HVAC [4]