Investment bank Evercore stated that $Amphenol (APH.US)$ may remain a “core holding” worth maintaining for the foreseeable future, assigning it an “outperform” rating with a price target of $180.
Evercore ISI analyst Amit Daryanani wrote in a client report: “We believe Amphenol remains a core holding. Driven by AI-related demand, M&A synergies, and diversified growth in non-datacom end markets, the company is well positioned to outperform the market in calendar year 2026 and beyond. In a bullish scenario, we see Amphenol’s earnings per share (EPS) reaching approximately $6.00 next year, with its share price potentially exceeding $220. Looking ahead, sustained double-digit revenue growth combined with margin expansion above 30% could drive EPS toward approximately $8.00.”
Market Leader in AI Connectors
Daryanani noted that, upon closer analysis, Amphenol is the market leader in artificial intelligence connectors—including both copper and fiber optics. He stated that given customers are still evaluating and debating between copper and fiber solutions, Amphenol is likely to become the default connectivity partner regardless of future industry direction. He added that Amphenol’s fiber optics business is roughly comparable in scale to Corning (GLW.US).
Additionally, Amphenol completed five acquisitions last year for approximately $3.8 billion, excluding its $10.5 billion all-cash acquisition of CommScope’s (COMM.US) Connectivity and Cable Solutions business. Following the completion of this transaction, the former CommScope business was renamed Vistance (VISN.US).
Daryanani explained that following this transaction, Amphenol’s net leverage stands at approximately 1.6x, and the company generates $4–5 billion in annual free cash flow, indicating room for further leverage increases going forward.
Other positive factors include the potential for ‘broad-based growth’ beyond information technology (IT) and datacom markets, continued margin expansion, and the company’s long-standing track record of strong execution.
Daryanani added: “Amphenol uniquely combines agility, diversification, and global scale—a combination that remains central to its competitive advantage. This will enable the company to sustain long-term double-digit revenue growth and high-teens EPS growth with relatively low volatility.”