TD Cowen analyst Joseph C Giordano has maintained their neutral stance on APH stock, giving a Hold rating today.
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Joseph C Giordano has given his Hold rating due to a combination of factors related to Amphenol’s current market positioning and future growth prospects. The company’s significant shift in revenue concentration towards the IT/Datacom sector, which is expected to account for nearly 45% of sales next year, has been a key driver of its recent organic growth. However, this increased concentration could pose risks if market conditions change, as it reduces the company’s diversification.
Additionally, while Amphenol’s cash conversion has been strong, the anticipated increase in capital expenditures and a shift towards lower free cash flow conversion rates are areas of concern. Despite these challenges, the company is projected to achieve over 30% EPS growth next year, supported by a strong customer base. However, the current high trading multiples, with shares trading at over 30 times the 2026 EPS estimate, raise questions about sustainability as growth rates potentially decelerate. The price target of $115 reflects a more conservative valuation, considering these factors.
In another report released today, Barclays also maintained a Hold rating on the stock with a $143.00 price target.
Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of APH in relation to earlier this year.