UBS Maintains a 'Neutral' on Amphenol (APH); Modest Margin Pressure; Minimal Changes

UBS maintains a 'Neutral' on Amphenol (NYSE: APH) price target raised from $55 to $58.

UBS analyst says, "OM in the June qtr of 19.4% was down 40bps q/q and y/y. We estimate less than ½ the q/q drop of 40bps in OM was due to restructuring as 4% of workforce (or ~1600 employees) was let go (APH does not treat restructuring as one-time and therefore costs flow through P&L) while the rest was from higher input costs (wages, metals). We adjust our model and now foresee Revs/EPS for CY11/CY12 of $3.995b/$3.11 and $4.277b/$3.37 vs. $3.978b/$3.10 and $4.286b/$3.38 prev. The implied Y/Y growth in sales is 7% for CY12 (was 7.8%)."

For more ratings news on Amphenol click here and for the rating history of Amphenol click here.

Shares of Amphenol closed at $50.15 yesterday.

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