Buy Amphenol (NYSE:APH) on Weakness Says Ticonderoga

Investors should buy Amphenol (NYSE:APH) on any weakness, says Ticonderoga, citing their projections, which were a little ahead of estimates.

Ticonderoga noted, "This morning (Wednesday), APH reported 4Q10 revenue of $949.9 million (flat Q/Q vs. an 11-year average of up 4%) that slightly exceeded our projection of $943.1 million (Street was at $947.9 million), while pro forma EPS of $0.74 was above our $0.73 estimate (the Street also was also at $0.73). Recall, Amphenol's outlook for 4Q10 called for sales in the range of $933 million to $948 million with pro forma EPS of $0.71 to $0.73. In our preview yesterday, we indicated that we felt APH would at least meet our 4Q10 projections, however, we did not highlight big upside potential as we have historically estimated due to a less seasonal December quarter across the connector and tech supply chain world. At the same time, APH's outlook for 1Q11 and 2011 are slightly ahead of our estimates and the Street. We would be buyers of APH on any weakness this morning."

Ticonderoga reiterates a "Buy" rating on Amphenol (APH), which closed Wednesday at $52.89, the same as its prior close. Ticonderoga has a price target of $60 on Amphenol.