03:05 PM EDT, 04/24/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target by $30 to $109, 31x our '25 EPS view, above peers and APH's three-year average (~25x) on rising demand for interconnect technology to enable AI. We raise our '24 EPS view by $0.30 to $3.35 and raise '25's by $0.30 to $3.50. APH posted Q1 sales of $3.26B (+9% Y/Y) and EPS of $0.80 (+16%), both above consensus. APH is experiencing multiple expansion from AI-fueled growth in its IT / Datacom business (21% of Q1 sales), which grew sales 29% Y/Y. We expect this growth to accelerate in '24 as AI requires more and more advanced interconnect products. We also like APH's Defense business (11%), where sales rose 13% Y/Y in Q1, as we see sustainable growth on rising geopolitical tensions. We are less optimistic on important markets like Automotive (24%) and Industrial (25%) on slowing EV momentum and general inventory headwinds, and we still see APH as relatively expensive by historical terms given its broad industrial exposure that restricts its growth potential (despite AI momentum), in our view.