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Investing.com - Truist Securities maintained its Buy rating and $126.00 price target on Amphenol (NYSE:APH), a prominent player in the electronic equipment sector with a market capitalization of $134.9 billion, following the company’s announcement of its plan to acquire Trexon. InvestingPro data shows the company maintains a "GREAT" financial health score, with the stock trading near its 52-week high of $112.35.
Amphenol plans to purchase the privately-held Trexon for $1 billion in cash, according to Truist Securities. The acquisition is expected to contribute approximately 1.3% to Amphenol’s sales and earnings per share within two years after the deal closes. This adds to Amphenol’s impressive revenue growth of 40.5% over the last twelve months, with current annual revenue reaching $18.8 billion.
Trexon is projected to generate sales of $290 million and EBITDA of 26% in calendar year 2025, Truist noted in its analysis of the transaction. This acquisition follows Amphenol’s recently announced CCS acquisition, which was comparatively larger.
Truist Securities views acquisitions as Amphenol’s highest-return use of cash and considers them positive for the stock. The firm specifically cited the Trexon deal as another factor supporting its constructive outlook on Amphenol.
The transaction represents Amphenol’s latest move in its ongoing acquisition strategy, which the company has historically used to expand its product offerings and market reach in the electronics components sector.
In other recent news, Amphenol has reported significant developments that could impact investor decisions. The company announced plans to acquire Trexon, a provider of high-reliability interconnect and cable assemblies for the defense market, in a deal valued at approximately $1 billion. This acquisition is expected to close in the fourth quarter of 2025. Additionally, Amphenol has agreed to purchase CommScope’s Connectivity and Cable Solutions segment for around $10.5 billion, pending shareholder approval, with the transaction anticipated to finalize in the first half of 2026.
Amphenol’s financial performance has also caught the attention of analysts. Evercore ISI raised its price target for Amphenol to $120, citing an expansion in the company’s artificial intelligence portfolio, with quarterly AI revenue estimates increasing significantly. Truist Securities similarly increased its price target to $126, highlighting impressive results and guidance despite geopolitical challenges. These analyst updates reflect a positive outlook on Amphenol’s strategic moves and financial health.
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