Analyst Asiya Merchant from Citi maintained a Buy rating on Amphenol and keeping the price target at $125.00.
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Asiya Merchant has given his Buy rating due to a combination of factors that highlight Amphenol’s strategic growth and financial prospects. The recent acquisition of the Cable and Connectivity Solutions (CCS) business from Commscope for $10.5 billion is a significant move, marking the largest acquisition in Amphenol’s history. This acquisition is expected to enhance Amphenol’s position in the communications infrastructure market, with projected sales and adjusted EBITDA of $3.6 billion and 26% by 2025.
Furthermore, the deal is anticipated to be accretive to Amphenol’s adjusted EPS in the first full year post-closing, excluding acquisition-related costs. The valuation of the deal at an EV/EBITDA multiple of approximately 11x is favorable compared to Amphenol’s recent acquisitions and current trading multiples. Additionally, there is an expected share price return of 19.8%, indicating a positive short-term outlook. These factors collectively support the Buy rating, reflecting confidence in Amphenol’s growth trajectory and financial performance.
According to TipRanks, Merchant is a 5-star analyst with an average return of 29.5% and a 74.60% success rate. Merchant covers the Technology sector, focusing on stocks such as Seagate Tech, Amphenol, and Dell Technologies.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $121.00 price target.