Deutsche Bank Positive on Amphenol (APH) Ahead of Investor Field Trip

Deutsche Bank is hosting an investor field trip with Amphenol's (NYSE: APH) CEO Adam Norwitt and CFO Craig Lampo at the company's Wallingford, CT headquarters on Friday November 20th. Topics to be addressed are listed below and we will follow up with the corresponding detail. APH recently reported in-line F3Q-15 results but provided weak guidance due to a pause in Industrial and Auto/Datacom demand and weakness in China/emerging markets. We continue to view APH as well positioned for a number of strong growth trends longer term, including increased electrical content and the Internet of Things. No change to $60 PT or Buy rating.

1) What are your long-term opportunities in the automotive market? Are the weaker demand trends that APH is seeing in China isolated to that geography or indicative of a broader slowing in the automotive market?

2) Within your industrial portfolio, can growth in heavy equipment and alternative energy scale to offset oil and gas related headwinds? Are there other industrial segments that offer potential growth opportunities?

3) What is driving the recent weakness in the networking and storage piece of the IT/datacom segment? Would you characterize it as delays in orders that will rebound in 2016 or a more meaningful shift in customer spending?

4) What is your strategy in the Mobile Devices market? How sustainable are the strong trends you have been seeing recently and what are your expectations for this segment in 2016?

5) What is your outlook for the military business? In an environment of more moderate spending, do you expect this segment to grow over the next few years and if so, what will drive this growth?

6) APH benefits from fairly diverse end market exposure. What are the nearterm opportunities to further expand the business mix?

7) How large of a market opportunity is the sensor market?

8) FX headwinds remain a key issue for the company. Do you see any signs of improvement? Are there opportunities to mitigate the impact on the business?

9) Do you still view a 25% contribution margin as a reasonable target? What are the largest drivers of operating margin expansion going forward?

10) In what segments do you see the most growth opportunities over the next 3-5 years? How do you expect your business mix to change over this period?

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 $54.53 yesterday.

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