Amphenol: Strong AI-Driven Growth but Full Valuation Leads to Maintained Hold Rating

In a report released today, Joseph C Giordano from TD Cowen maintained a Hold rating on Amphenol, with a price target of $135.00.

Joseph C Giordano has given his Hold rating due to a combination of factors related to Amphenol’s strong fundamentals but increasingly full valuation. He notes that operational performance and positioning, particularly in AI and datacenter-related demand, remain robust and support a forecast of more than 30% EPS growth into 2026. However, as expectations and earnings estimates rise, the room for continued upside surprises appears less certain, and the recent surge in orders, while impressive, introduces additional uncertainty about the sustainability of that outperformance. The complexity of integrating CommScope and the many moving pieces around AI growth trajectories make it difficult, in his view, to have high conviction that current trends will persist at the same pace.

At the same time, Giordano’s price target of $135 reflects valuation multiples of about 30x 2026 EPS and 25x 2027 EPS, levels that he views as largely aligned with the company’s anticipated earnings growth. Because his earnings forecast remains unchanged even after strong quarterly results and updated guidance, he sees the stock as fairly priced rather than clearly undervalued. In effect, the combination of solid long-term growth prospects, execution strength, and elevated but justifiable valuation supports a more neutral stance. This balance between attractive fundamentals and a less obvious margin of safety ultimately leads him to maintain a Hold recommendation on Amphenol shares.

According to TipRanks, C Giordano is a 5-star analyst with an average return of 12.2% and a 63.10% success rate. C Giordano covers the Industrials sector, focusing on stocks such as IDEX, Ametek, and Mueller Water Products.