Amphenol: Structural Growth Reaccelerates, Rating Upgraded To Buy
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Narek Hovhannisyan354 FollowersFollow5ShareSavePlay(18min)CommentsSummaryAmphenol is upgraded to Buy with a $148 target, reflecting a 13% upside after a record Q3 and raised forecasts.Strategic M&A, notably Trexon and CommScope CCS, strengthens APH’s high-margin, structurally growing segments in defense, datacom, and industrial sensors.Q3 revenue surged 53% y/y (41% organic), driven by explosive demand in IT/datacenter and communications, with robust margin and FCF expansion.Valuation premium is justified by sustained outperformance and cash generation, supporting aggressive capital returns and further upside if growth persists.
Getty Images Investment thesis Until recently (to be more precise, in August), I did not see a clear potential for growth in Amphenol shares, considering that a high growth rate and good financial results in general are already embedded in the price. However, theThis article was written byNarek Hovhannisyan354 FollowersFollowHi there! I’m Narek, and I’ve been in the investment world for over six years. I started out as an equity analyst at European banks, digging into reports and learning how to spot value in the markets. I’ve worked across sectors — from telecom to industry — and found that behind every financial statement is a real story. I studied in Belgium — did my bachelor’s in Antwerp, master’s at KU Leuven, and later completed an MBA in Finance at Vlerick. That journey gave me both theory and hands-on skills. Now I’m building my own investment project focused on the CIS region. I’m passionate about applying Western analytical tools to uncover hidden value in emerging markets. If you enjoy deep, fundamentals-driven research and digging beneath the surface of a company — glad to have you on board!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.