2024-03-23 09:00:00 ET
Summary
- Amphenol's stock price has surged by approximately 30% since July 2023, driven by strong growth in defense and auto markets.
- The company's well-diversified end-markets, including industrial, automotive, and IT/data communications, offset each other's cycles.
- Amphenol's recent acquisition of Carlisle Interconnect Technologies is expected to be value accretive and contribute to revenue and cost synergies.
Amphenol ( APH ) has been one of my key holdings over the past decade. In my previous article in July 2023, I discussed their structural growth in 5G, factory automation, semiconductor manufacturing, and electric vehicles. Since then, the stock price has surged by approximately 30%. They experienced strong growth in defense and auto markets offset by weak IT Datacom and Industrial spending in FY23. Their recently announced deal with Carlisle is value accretive in my opinion. I reiterate a ‘Buy’ rating on Amphenol with a one-year target price of $130 per share.
End-Markets Present Different Cycles
As mentioned in my previous article, Amphenol’s connector and sensor products are used in a highly diversified end-markets, with no single end-market accounting for more than 25% of group revenue....
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Amphenol: Defense And Automotive Drive Growth In FY24