Truist Raises Price Target on Amphenol Corporation (APH) After CommScope Deal

Core Viewpoint - Amphenol Corporation is highlighted as a significant player in the AI stock market, particularly following its acquisition of CommScope's Connectivity and Cable Solutions business, which is expected to enhance its market position and financial performance [1][2]. Group 1: Acquisition Details - Amphenol has completed the acquisition of CommScope's Connectivity and Cable Solutions (CCS) business, which adds substantial fiber optic interconnect capabilities for IT datacom and communications networks, as well as industrial interconnect products for building infrastructure [2]. - This acquisition, valued at $10.5 billion, is Amphenol's largest to date and is projected to increase sales by approximately 17% [3]. Group 2: Financial Projections - Truist Securities has raised its earnings per share (EPS) estimate for Amphenol to $4.71 for 2027, up from $4.33, reflecting a 4% EPS accretion in 2026 and an anticipated long-term accretion of about 16% within two years [4]. - Analysts note that Amphenol has a strong track record with acquisitions, which typically lead to increased sales, improved operating profit margins, and enhanced return on invested capital [3].