Rothschild & Co Redburn Issues Pessimistic Forecast for Amphenol (NYSE:APH) Stock Price

Key Points

• Rothschild & Co Redburn sharply cut Amphenol’s price target from $197 to $107, though the new target still implies 35.57% upside from the prior close.
• Despite the downgrade, Wall Street sentiment remains positive: 16 analysts rate Amphenol a Buy and three a Hold, producing a “Moderate Buy” consensus and average target of $111.79.
• Amphenol reported stronger-than-expected quarterly results, with EPS of $0.80 versus $0.73 expected and revenue up 65.1% year over year; its board also authorized a $4 billion share buyback.

Amphenol (NYSE:APH - Get Free Report) had its target price cut by Rothschild & Co Redburn from $197.00 to $107.00 in a research note issued to investors on Friday. Rothschild & Co Redburn's price objective points to a potential upside of 35.57% from the stock's previous close.

Several other research firms have also issued reports on APH. BNP Paribas Exane upped their price target on shares of Amphenol from $110.00 to $115.00 and gave the stock an "outperform" rating in a research report on Thursday. The Goldman Sachs Group reiterated a "buy" rating and issued a $116.00 price target (up from $102.00) on shares of Amphenol in a research note on Tuesday, October 6th. Citigroup reiterated a "buy" rating and issued a $115.00 target price (up from $112.00) on shares of Amphenol in a research report on Thursday. Sanford C. Bernstein initiated coverage on shares of Amphenol in a research note on Wednesday, September 23rd. They issued an "outperform" rating and a $99.00 price objective on the stock. Finally, Wolfe Research began coverage on shares of Amphenol in a report on Wednesday, September 30th. They set an "outperform" rating and a $105.00 price objective on the stock. Sixteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $111.79.

Amphenol Price Performance

Shares of NYSE:APH opened at $78.93 on Friday. The stock has a market capitalization of $194.63 billion, a P/E ratio of 34.34, a P/E/G ratio of 1.03 and a beta of 1.23. The business has a 50-day moving average of $81.40 and a two-hundred day moving average of $75.44. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.94 and a quick ratio of 1.41. Amphenol has a fifty-two week low of $59.01 and a fifty-two week high of $89.93.

Amphenol (NYSE:APH - Get Free Report) last issued its earnings results on Wednesday, October 28th. The electronics maker reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.73 by $0.07. The business had revenue of $10.23 billion for the quarter, compared to analyst estimates of $9.49 billion. Amphenol had a net margin of 17.95% and a return on equity of 42.53%. The firm's revenue was up 65.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.93 EPS. On average, equities research analysts predict that Amphenol will post 2.83 EPS for the current fiscal year.

Amphenol announced that its Board of Directors has authorized a stock buyback plan on Wednesday, October 28th that permits the company to repurchase $4 billion in outstanding shares. This buyback authorization permits the electronics maker to purchase up to 2% of its stock through open market purchases. Share buyback plans are typically an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO Craig Lampo sold 386,400 shares of the firm's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $83.66, for a total value of $32,324,292.00. Following the completion of the sale, the chief financial officer owned 181,330 shares of the company's stock, valued at $15,169,161.15. This trade represents a 68.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP David Silverman sold 240,000 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $87.12, for a total transaction of $20,908,800.00. Following the transaction, the executive vice president owned 31,344 shares in the company, valued at $2,730,689.28. This represents a 88.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 726,400 shares of company stock valued at $61,332,592 over the last ninety days. 1.42% of the stock is owned by insiders.

Institutional Trading of Amphenol

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Pacific Excel Wealth Advisors Inc. purchased a new stake in shares of Amphenol in the 2nd quarter valued at approximately $1,927,000. Evelyn Partners Investment Management Services Ltd increased its holdings in shares of Amphenol by 132.7% in the 1st quarter. Evelyn Partners Investment Management Services Ltd now owns 45,599 shares of the electronics maker's stock valued at $5,761,000 after acquiring an additional 26,000 shares during the last quarter. Gabelli Funds LLC lifted its stake in Amphenol by 29.3% during the first quarter. Gabelli Funds LLC now owns 193,939 shares of the electronics maker's stock worth $24,504,000 after purchasing an additional 43,945 shares during the last quarter. Segall Bryant & Hamill LLC acquired a new position in Amphenol in the first quarter valued at approximately $5,637,000. Finally, Allen Capital Group LLC increased its stake in Amphenol by 1,118.7% in the first quarter. Allen Capital Group LLC now owns 39,681 shares of the electronics maker's stock valued at $5,014,000 after purchasing an additional 36,425 shares during the last quarter. 97.01% of the stock is owned by hedge funds and other institutional investors.

Amphenol News Summary

Here are the key news stories impacting Amphenol this week:

• Positive Sentiment: Raised fourth-quarter and full-year guidance: Amphenol expects fourth-quarter EPS of $0.81–$0.83, above the $0.75 consensus, and revenue of $10.3–$10.5 billion versus expectations of $9.7 billion. Full-year EPS guidance of $2.82–$2.84 and revenue guidance of $36.9–$37.1 billion also exceed consensus estimates of $2.69 and $35.7 billion, respectively.
• Positive Sentiment: Q3 earnings beat expectations: Adjusted EPS came in at $0.80 versus the $0.73 consensus, while revenue rose 65.1% year over year to approximately $10.2 billion, helped by strong IT datacom demand, acquisitions and broad organic growth. Amphenol's Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: AI demand and order momentum remain strong: Management highlighted record orders and robust AI-related demand, with orders outpacing sales. These trends support the company’s stronger outlook despite weakness in portions of the communications-network market. Amphenol Q3 Earnings Call Highlights AI Demand and Growth Outlook
• Positive Sentiment: Analyst sentiment improved: JPMorgan, BNP Paribas Exane, UBS and Truist raised their price targets to $115, $115, $111 and $112, respectively, while maintaining positive ratings.
• Positive Sentiment: Share repurchase authorized: The board approved a $4 billion buyback, allowing repurchases of up to 2% of outstanding shares. The program may support EPS and signal management’s confidence in the company’s valuation. Amphenol Board Approves $4 Billion Stock Repurchase Plan
• Neutral Sentiment: Amphenol agreed to acquire AdvancedPCB Holdings and Humanetics Sensors. The deals could expand its electronics and sensor portfolios, but financial terms and the expected earnings impact were not disclosed. Industrial Growth Partners Announces Sale of AdvancedPCB
• Negative Sentiment: Dividend reduced: The quarterly dividend was set at $0.15 per share, down 40% from $0.25 previously, reducing the annualized dividend to $0.60 and potentially weighing on income-focused investors.

About Amphenol

Amphenol Corporation NYSE: APH is a global manufacturer of electrical, electronic and fiber-optic connectors, interconnect systems and related products. Its portfolio includes cable assemblies, sensors, antennas, backplane systems, radio-frequency components and other specialized electronic hardware.

The company serves customers across a range of industries, including automotive, aerospace and defense, information technology and data communications, industrial, mobile networks, commercial aerospace, medical and other markets.

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