Parker Hannifin Posts Solid Second-Quarter Results; Raising Our Fair Value Estimate

After reviewing narrow-moat-rated Parker Hannifin’s fiscal 2022 second-quarter results, we are lifting our fair value estimate to $325 per share from $296. Most of the change is due to our reduced long-term tax assumption, responsible for a more than 6% tailwind to our valuation. We reduced our corporate tax assumption since we now believe U.S. rates are unlikely to move higher to fund the Biden administration’s human infrastructure bill. Time value of money and management’s raised guidance made up the remainder of our valuation change.