Aerospace Could Make Amphenol Soar (APH, BA)

Analysts at Citigroup Global Markets have reiterated a Buy rating on Amphenol Corp (NYSE: APH) with a price target of $51.00.

Amphenol reported Q4 revenue of $758 million, beating Street estimates of $736 million. APH reported an incremental operating margin of 34% and generated cash worth $0.79 per share. Analysts believe that the Boeing (NYSE: BA) Dreamliner project should bring in revenues to Amphenol. ROIC and margins are expected to inflate and solid cash flows could see APH perform major acquisitions. Rising raw material prices and pricing pressures in coaxial cable business are cited as potential risks.