Truist Securities raises Amphenol stock price target to $126 on AI strength

Published 25/07/2025, 08:34
Truist Securities raises Amphenol stock price target to $126 on AI strength

Investing.com - Truist Securities raised its price target on Amphenol (NYSE:APH) to $126.00 from $102.00 on Thursday, while maintaining a Buy rating on the stock. According to InvestingPro data, the stock has delivered an impressive 51% return year-to-date and is currently trading near its 52-week high of $108.85.

The price target increase follows what Truist described as "impressive results and guidance" from the connector and sensor manufacturer, despite ongoing geopolitical tariff risks.

Truist noted that the stock’s negative market reaction was triggered by Amphenol’s lower sequential outlook in AI revenues, which the firm characterized as "just a speed bump" rather than a significant concern.

The research firm believes Amphenol’s position in the AI market remains "strong and stable," adding that removing an over-shipment from Q2 reveals quarter-over-quarter growth in this end market for both Q2 and Q3.

Truist significantly raised its calendar year 2026 earnings per share estimate to $3.32 from $2.84, with the new price target based on a 32x multiple applied to $3.95, which includes the firm’s 2026 EPS estimate plus $0.63 in merger and acquisition potential.

In other recent news, Amphenol Corporation reported impressive second-quarter results, with earnings per share (EPS) of $0.81, surpassing analyst expectations of $0.66. The company also reported revenue of $5.7 billion, exceeding forecasts of $5.02 billion. This performance represents a 56.5% year-over-year sales increase, with 41% attributed to organic growth. UBS responded by raising its price target for Amphenol to $120, maintaining a Buy rating due to the company’s strong earnings and optimistic guidance for the third quarter. Evercore ISI reiterated its Outperform rating with a $110 price target, acknowledging the company’s robust performance. BofA Securities also adjusted its price target to $110 from $102, maintaining a Neutral rating, despite noting a book-to-bill ratio below 1 and a projected decline in IT Datacom. These developments reflect a positive outlook from analysts following Amphenol’s latest earnings report.

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