RBC Capital Raises Price Target on Amphenol (APH) to $65 Following Investor Meetings

August 26, 2016 7:04 AM EDT
Get Alerts APH Hot Sheet
Price: $68.83 +1.12%

Rating Summary:
    4 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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RBC Capital reiterated a Top Pick rating on Amphenol (NYSE: APH), and raised the price target to $65.00 (from $63.00), after hosting investor meetings with management. APH remains confident in ability to sustainably outgrow the industry driven by organic and inorganic initiatives. The company also remains committed to M&A program and noted that high FCF generation coupled w/ability to lever up, it has the bandwidth to execute larger transactions provided the right opportunities exist.

Analyst Amit Daryanani commented, "(1) Mobile Devices on track to see a muted H2:16 uptick (vs. H1:16) reflective of a challenged smartphone market. Stressed ability to capitalize on any upside to demand that may occur. (2) Military: APH noted “stop-ship” has been lifted by the DLA; APH doesn’t anticipate any share shift due to this and customers have been understanding/supportive. (3) IT/Datacomm: Remain positive driven by a confluence of share gains and extensive presence with hyperscale customers. (4) FCI integration: Several drivers for leverage on both top and bottom lines should drive significant upside (ex TCS GM is now the GM for FCI). (5) M&A: APH has the ability to do large acquisitions given ability to lever up and strong FCF generation. Maintaining Top Pick and increasing price target to $65 from $63 as we adjust our FTM EPS multiple from 23x to 24x to reflect improved sentiment."

For an analyst ratings summary and ratings history on Amphenol click here. For more ratings news on Amphenol click here.

Shares of Amphenol closed at $61.44 yesterday.



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