Amphenol stock price target raised to $110 from $105 at Evercore ISI

Investing.com - Evercore ISI has raised its price target on Amphenol (NYSE:APH) to $110.00 from $105.00 while maintaining an Outperform rating ahead of the company’s July 23 earnings report. The stock, currently trading near its 52-week high of $102.08, has demonstrated remarkable momentum with a 47.52% return over the past six months. According to InvestingPro analysis, the company appears to be trading above its Fair Value.

The research firm expects Amphenol to exceed street estimates for the June quarter, citing higher AI ramps, pockets of recovery in Industrials, and continued strength in traditional IT/Datacom and Military/Aerospace segments. Evercore notes that Amphenol has historically navigated macro volatility better than peers. With a market capitalization of $123.33 billion and impressive revenue growth of 30.7% over the last twelve months, the company has demonstrated strong operational execution. InvestingPro subscribers can access 20+ additional insights about Amphenol’s growth prospects and financial health.

Street expectations call for revenues to increase 3.9% quarter-over-quarter, below historical seasonality of 6.9%, largely due to outsized growth in the March quarter. For the September quarter, consensus estimates project 3.1% growth compared to historical seasonality of 6.4%.

Evercore highlights several positive factors including IT/Datacom capital expenditure ramps, incremental improvement in Industrial/Auto sectors particularly in North America and Asia, and margin expansion that reached 23.5% last quarter with Communications at 27.4%.

The firm also points to potential upside from the Andrew acquisition, which Amphenol previously revised from a $0.06 to $0.09 EPS contribution, with Evercore suggesting it could be higher due to better margin performance.

In other recent news, Amphenol Corporation has been the focus of several analyst updates and financial activities. BofA Securities maintained a Neutral rating on Amphenol, raising its price target to $102, with projections that the company will exceed second-quarter revenue and earnings estimates. Evercore ISI also increased its price target for Amphenol to $105, maintaining an In Line rating, while UBS raised its target to $106, keeping a Buy rating. These adjustments reflect confidence in Amphenol’s growth potential, particularly in AI advancements and strategic mergers.

Amphenol recently priced €600 million in senior notes at a 3.125% interest rate, with plans to use the proceeds for repaying U.S. commercial paper program borrowings and general corporate purposes. Additionally, the company set pricing for a $750 million senior notes offering at a 4.375% interest rate, which is also part of its capital-raising strategy. Both offerings are independent of each other, showcasing Amphenol’s approach to securing financing across different currency markets. These developments highlight Amphenol’s strategic financial maneuvers and optimistic growth outlook from analysts.

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