RBC Capital Raises Price Target on Amphenol (APH) to $71; Reiterates Top Pick
- Oil steadies on doubts output cut will end global glut
- Western Digital (WDC) Raises Q2 Outlook
- Dollar edges up vs yen as traders eye ECB meeting for cues
- Foxconn says in preliminary discussions to expand U.S. operations
- Dave & Buster's Entertainment (PLAY) Tops Q3 EPS by 11c, Raises FY Revenue Guidance
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
RBC Capital reiterated a Top Pick rating on Amphenol (NYSE: APH), and raised the price target to $71.00 (from $69.00), given potential for higher EPS and FCF going forward. APH is wellpositioned for upside in the event of a corporate tax-rate reduction. Under Mr. Trump’s tax-reform plans, corporate tax could be adjusted to 15%; looking at our CY17E EPS, tax-rate reductions could bolster EPS by ~16% to ~$3.45+.APH could also see an upside in both Industrial and Mil-Aero businesses under a Trump administration.
Analyst Amit Daryanani commented, "Fundamentally, our long APH thesis remains intact given impressive end-market diversity, stable/positive trends in key segments & an under-levered balance sheet that increases probability of larger M&A. Incrementally, we see several tailwinds that could stack up in 2017 given potential policy changes under the Trump administration: 1) corporate tax rate reductions from 26.5% to 15%, would bolster EPS by $0.47 (~16%) and FCF by ~15%, 2) lift in Industrial segment revenues (~17% of revenue) driven by infrastructure investments, 3) potential for increased military spend under a Republican Congress & President, and 4) potential to repatriate offshore cash. Also, APH has plenty of liquidity (~1.3x leverage) and FCF generation ($800M+) to execute on M&A. Finally, we expect mobile devices to ramp materially in CY17 driven by content uptick. Net/Net: We see an upside EPS scenario of >$3.75 EPS that should enable APH to work towards $85+ (our upside scenario)."
Shares of Amphenol closed at $68.49 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Susquehanna Upgrades Caleres (CAL) to Positive
- Mizuho Securities Raises Price Target on Francesca's (FRAN) Following 3Q Beat
- BMO Capital Raises Price Target on Illinois Tool Works (ITW) to $145 Following Investor Day
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesRBC Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!