Truist Reaffirms Buy Rating on Amphenol (APH), Keeps $126 PT

Amphenol Corporation (NYSE:APH) is one of the must-buy US stocks to invest in. On August 19, Truist Securities reaffirmed its “Buy” rating on Amphenol and kept its price target at $126 following Amphenol’s announcement of its plan to acquire Trexon. Amphenol plans to acquire Trexon, a privately-held company specializing in high-reliability interconnect and cable assemblies for the defense market, for $1 billion in cash. The deal is expected to close in Q4 2025 and is projected to add about 1.3% to Amphenol’s sales and earnings per share within two years.

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Truist Securities views the Trexon acquisition as a positive move, stating that acquisitions are Amphenol’s “highest-return use of cash.” They highlighted the deal as a factor supporting their “constructive outlook” on the stock. Truist also noted that Trexon is expected to generate $290 million in sales and a 26% EBITDA margin in 2025, contributing to Amphenol’s growth.

The Trexon deal follows Amphenol’s larger $10.5 billion acquisition of CommScope’s Connectivity and Cable Solutions segment, expected to close in the first half of 2026, pending shareholder approval. Truist sees Amphenol’s ongoing acquisition strategy as a way to expand its product offerings and market reach in the electronics components sector.

Amphenol Corporation (NYSE:APH) is a global electronics manufacturer. It designs, produces, and markets electrical, electronic, and fiber optic connectors, sensors, antennas, and interconnect systems. The company serves diverse end markets, including automotive, aerospace, industrial, IT, and mobile devices. It supports critical applications that require reliable connectivity and high-performance signal transmission.

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Disclosure: None. This article is originally published at Insider Monkey.