BofA update shows where active managers are putting money
Investing.com - BofA Securities raised its price target on Amphenol (NYSE:APH) to $102.00 from $90.00 while maintaining a Neutral rating on the stock. The new target comes as the stock trades near its 52-week high, having delivered an impressive 58% return over the past year. According to InvestingPro analysis, the stock appears overvalued at current levels.
The firm expects Amphenol to report second-quarter revenue of $5.1 billion and earnings per share of $0.68, exceeding both Street estimates and the high end of company guidance of $5.0 billion and $0.66 per share.
BofA projects typical seasonal growth of 6% quarter-over-quarter, driven by strength in IT Data Communications and Military end-markets, with potential for additional revenue upside of $100-200 million if there is no organic deceleration or incremental acquisitions.
The analysts forecast second-quarter gross margin of 35.5% and operating margin of 23.6%, representing a 10 basis point increase quarter-over-quarter and exceeding Street estimates of 34.9% and 23.5%, respectively.
BofA maintained its Neutral rating on Amphenol stock, noting that while the company benefits from "strong near-term AI trajectory," these positives "could be somewhat offset by broader macro headwinds."
In other recent news, Amphenol Corporation has announced the pricing of €600 million in senior notes due 2032 with a 3.125% interest rate and $750 million in senior notes due 2028 with a 4.375% interest rate. The proceeds from these offerings are intended to repay borrowings under the company’s U.S. commercial paper program and for general corporate purposes. Additionally, Evercore ISI and UBS have raised their price targets for Amphenol’s stock, with Evercore ISI setting a target of $105 and UBS setting a target of $106. Both firms maintain positive ratings, citing strong performance and growth potential. UBS analyst Chris Snyder has revised the earnings per share forecast for 2026, indicating a 6% increase from previous estimates due to higher growth expectations and incremental margins. Furthermore, Amphenol has declared a dividend of $0.165 per share for the second quarter of 2025, payable to shareholders on record by June 17, 2025. These developments highlight Amphenol’s strategic financial maneuvers and positive outlook from analysts.
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