Goldman Sachs analyst Joe Ritchie double upgraded Parker-Hannifin to Buy from Sell with a price target of $230, up from $180. The market has pre-traded the bottom in the Institute for Supply Management Index faster this year than it has historically as cyclical performance has caught up to defensives, Ritchie tells investors in a research note. However, the analyst believes there is still room for this trade to continue, noting the ISM has stabilized and historically cyclicals have typically outperformed for at least the 12 months following stabilization. As such, Ritchie is taking a "more pro-cyclical approach" to his coverage and double upgrading "cyclical bellwether" Parker-Hannifin. The shares will outperform from here as the company's multiple has historically re-rated meaningfully within one year of the ISM troughing, says the analyst.