Amphenol stock rises as Evercore ISI reiterates Outperform on Trexon deal

Published 18/08/2025, 17:44
Amphenol stock rises as Evercore ISI reiterates Outperform on Trexon deal

Investing.com - Amphenol (NYSE:APH) stock gained after Evercore ISI reiterated an Outperform rating and $110.00 price target following the company’s acquisition announcement. The stock, currently trading near its 52-week high of $112.35, has delivered an impressive 67.5% return over the past year. According to InvestingPro data, 15 analysts have recently revised their earnings estimates upward.

Amphenol revealed Monday its plans to acquire Trexon, a provider of high-reliability interconnect and cable assemblies primarily for the defense market, for $1 billion. The transaction is expected to close in Q4 2025.

Trexon brings approximately $290 million in annual sales with 26% EBITDA margins, representing a purchase price of about 3.45x EV/EBITDA. The Boston-headquartered company employs roughly 1,200 people globally and supports over 250 aerospace and defense programs.

The acquisition strengthens Amphenol’s position in the aerospace and defense sector, capitalizing on secular growth and increasing government spending while broadening its customer base. Trexon is expected to contribute approximately one percentage point to Amphenol’s revenue in 2026.

Evercore ISI estimates that mergers and acquisitions could add approximately 20-25 cents to Amphenol’s earnings per share in the longer term, as the company continues using M&A to enhance its growth profile.

In other recent news, Amphenol Corporation has reported strong financial performance for its second quarter, with revenue reaching $5.65 billion and earnings per share at $0.81. This significantly surpassed analyst expectations of $5.04 billion in revenue and $0.67 in earnings per share. The company also experienced a 56.5% year-over-year sales increase, with 41% attributed to organic growth. In addition to its earnings success, Amphenol has announced plans to acquire Trexon for approximately $1 billion in cash, aiming to enhance its defense market capabilities. Another significant move includes Amphenol’s agreement to acquire CommScope’s Connectivity and Cable Solutions segment for $10.5 billion, pending shareholder approval. Analysts have responded positively to these developments, with Truist Securities raising its price target for Amphenol to $126, citing impressive results and guidance. UBS also increased its price target to $120 following a 21% earnings per share beat in the second quarter. Evercore ISI maintained its Outperform rating, reaffirming a price target of $110 after the strong earnings report.

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