Analyst Note| William Kerwin |
We maintain our $83 fair value estimate for wide-moat Amphenol and continue to view shares as undervalued. Amphenol recorded yet another impressive quarter despite a softening macroeconomic environment that is having greater effects at peers. We view Amphenol's excellent execution across varied business backdrops as evidence of both its end market diversity and its variable cost structure that underpins our Wide economic moat and Exemplary capital allocation ratings. We see signs of slowing orders, but we don't anticipate significant results deterioration for the firm. Amphenol is a stellar operator, and one we think would weather a worsening economic downturn better than its peers. In our view, investors have an attractive opportunity to get shares of this blue-chip company at a discount.