Amphenol Earnings: Excellent Quarterly Results Drive Our Valuation Up to $87 From $83

We raise our fair value estimate for Amphenol to $87 per share, from $83, after beating our fourth-quarter expectations on all fronts. Amphenol’s strong top-line performance in the quarter exemplifies its strong end market diversity, in our view, and continued share gains. We also laud the firm for terrific quarterly profitability once again, showing its structurally low cost structure compared with peers that supports its wide economic moat. We continue to see shares as overvalued, despite our raised valuation. Shares hit all-time highs following the firm’s fourth-quarter release, and we recommend investors wait for a pullback to commit capital to the blue-chip component supplier.