Amphenol, the Technology sector company, was revisited by a Wall Street analyst today. Analyst William Stein from Truist Financial maintained a Buy rating on the stock and has a $126.00 price target.
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William Stein has given his Buy rating due to a combination of factors surrounding Amphenol’s strategic acquisition plans. The company’s recent announcement to acquire Trexon for $1 billion in cash is expected to be accretive to both sales and earnings per share over time. This acquisition is anticipated to enhance Amphenol’s presence in the defense and aerospace markets, which are high-margin sectors, thereby justifying the higher valuation multiples paid for Trexon.
Moreover, the acquisition is seen as a positive use of Amphenol’s cash reserves, aligning with the company’s strategy of growth through acquisitions. The deal is projected to close by the end of the year and is expected to diversify Amphenol’s revenue streams, particularly in the Aerospace and Defense segments. Stein believes that Amphenol’s ability to integrate acquisitions effectively, as demonstrated by its track record of rising return on invested capital, supports the Buy rating with a price target of $126.
In another report released today, Evercore ISI also maintained a Buy rating on the stock with a $110.00 price target.