The brokearge firms believe PH is a high-quality Company and is showing good execution through its cost saving efforts.  However, they believe that although Parker stands to benefit from any recovery in global manufacturing activity, the Company’s increased scale in its international business (where Europe represents by far the largest geography) as well as its meaningful aerospace presence increases its late-cycle exposure relative to past economic cycles.  They also point out that uneven recovery in credit market conditions (in which smaller businesses continue to report difficulties in accessing credit) could serve as a near-term dampening factor on any recovery in Parker’s sales. The Company is well-positioned to continue its solid track record of organic growth upon a sustained recovery in industrial activity.  Though Parker’s improved margin profile and demand outlook is quite impressive, the firms believe much of these positives are already priced in the share.