Amphenol Corporation has completed its acquisition of CommScope's Connectivity and Cable Solutions business. The deal, valued at $10.5 billion, is the largest in Amphenol's history.
Analyst William S. Stein of Truist Securities raised the price target for Amphenol stock to $182 from $180. He kept a 'Buy' rating on the shares. This adjustment followed the closure of the acquisition.
The acquisition adds fiber optic interconnect capabilities for IT datacom and communications networks markets. It also includes a range of industrial interconnect products for the building infrastructure connectivity market.
Truist's research estimates the acquisition will expand Amphenol's sales by an estimated 17%. Analysts noted Amphenol has an 'excellent' track record with acquisitions. They highlighted that such deals help expand sales, operating profit margins, and return on invested capital.
The firm's updated model reflects an estimated 4% earnings per share accretion in 2026. It anticipates longer-term accretion of about 16% within two years. Truist has also raised its 2027 earnings per share estimate for APH to $4.71 from $4.33.
Amphenol Corporation designs, manufactures, and markets electrical, electronic, and fiber optic connectors.