Amphenol Corporation (APH) received a rating upgrade to buy today. Analysts cite robust organic growth, strategic acquisitions, and expanding profit margins as primary drivers for the move.
The company reported record revenue in the first quarter. Organic growth reached 33% during the period, bolstered by contributions from the recently acquired CCS business.
Amphenol achieved consistent earnings-per-share growth in 11 of the last 12 quarters. The company's non-GAAP operating margin strengthened to 27.3%.
Management will report second-quarter earnings on July 29. Analysts anticipate continued strength driven by high demand from IT and data communications markets, particularly data centers.