Evercore ISI maintained Outperform-rated Amphenol (NYSE:APH) as one of its top picks, reiterating a $95 price target.
Analysts told investors in a note that APH remains a core mid-cap growth asset to own on a multi-year basis due to its "inherent ability to sustain double-digit sales and mid-teens EPS growth with high consistency and low volatility over long durations."
"We think APH's EPS can get to ~$4.00+ over the next 2-3 years," the analysts wrote, adding that it is "positioned to sustain double-digit sales growth" over the long term.
"We think structurally via. organic and inorganic initiatives APH can sustain >10% top-line growth. Organic tailwinds include underlying growth in electronic equipment coupled with content growth. From an M&A perspective we see contribution from core connector/sensor markets coupled with potential to expand TAM into adjacent markets," they added.
They also stated they see secular tailwinds for the automotive sector, while APH has "impressive end market diversity," positioning it to outperform.
"We think APH is positioned to weather macro challenges given their diversity from a customer and end market perspective and a strong history of outperforming peers during downturns with respect to revenue and operating margins," the analysts concluded.