Analyst Note| William Kerwin |
Narrow-moat Amphenol effectuated a 2-for-1 stock split on March 5. Management had announced the split on its fourth-quarter earnings call at the end of January. From our pre-split $105 fair value estimate, our valuation remains unchanged, and our new, post-split fair value estimate is $52 per share. While shares’ current differential to our fair value may look narrower after the split, we remind investors that shares are at a 15% premium, and we’d recommend a greater margin of safety before committing capital to the name.