Analyst Note| William Kerwin |
We’re maintaining our $81 fair value estimate for Amphenol after the company reported stellar first-quarter results and more modest guidance. We continue to be impressed by Amphenol’s execution amid every macro environment or headwind that it encounters and view the firm as a bastion of consistent financial performance. We think this quarter once again showed the benefits of Amphenol’s diverse end market strategy and decentralized organization structure, with broad-based growth and strong profitability despite myriad headwinds. This execution and diversification is what underpins our narrow economic moat rating, our estimation of a lower cost of capital than peers, and our growth forecast for the firm. Following their recent pullback, we now view the shares as attractive for investors.