As previously reported, Morgan Stanley analyst Craig Hettenbach downgraded TE Connectivity (TEL) to Equal Weight from Overweight and lowered his price target for the shares to $95 from $98. The stock has outperformed by 7%-11% compared to peers year-to-date, which he attributes to its active portfolio management and cost initiatives leading to better EPS power through the cycle. However, Hettenbach thinks investors will get opportunities to add exposure as pressures on the business cycle play out and he sees a better near-term opportunity in Amphenol (APH) following that stock's underperformance, he tells investors.

BofA raised the firm's price target on TE Connectivity to $161 from $155 and keeps a Buy rating on the shares. Fiscal Q2 results showed quarter-over-quarter order growth in all segments and the firm is expecting steady margins for the rest of FY24, the analyst tells investors in a post-earnings note.

BofA raised the firm's price target on Amphenol to $124 from $121 and keeps a Buy rating on the shares after the company reported revenue and EPS that beat both guidance and Street estimates. Following the report, the firm is raising EPS estimates and reiterates its Buy rating, citing strong execution, improving margins, positive estimate revisions and potential for AI driven upside.

UBS analyst Chris Snyder raised the firm's price target on Amphenol to $138 from $135 and keeps a Buy rating on the shares. Amphenol's IT Datacom business reported 28% organic growth in the quarter, and the v-shaped recovery is due in large part to the company's outsized Data Center exposure, which is hitting the AI opportunity following a sharp period of destock, compounding the acceleration, the analyst tells investors in a research note. Assuming Amphenol hits their guidance and the non-AI business is flat to up 10% sequentially, the firm sees AI revenue of $190M-$240M in Q2, potentially doubling the firm's previous estimate.

Check out this morning's top movers from around Wall Street, compiled by The Fly. UP AFTER EARNINGS... To see the rest of the story go to thefly.com. See Story Here

In April, the Company purchased the remaining authorized amount of common stock under the existing three-year, $2B stock repurchase plan. On April 23, the company's board of directors approved a new three-year, $2B open market stock repurchase plan.

Sees Q3 revenue $4B, consensus $4.11B. The company said, "For the third quarter of fiscal 2024, the company expects net sales of approximately $4.0 billion. GAAP EPS from continuing operations are expected to be approximately $1.71, up 2% year over year, with adjusted EPS of approximately $1.85, up 5% year over year. Third quarter guidance includes a $0.15 year-over-year headwind from tax and currency exchange rates."

Bullish option flow detected in Amphenol with 7,956 calls trading, 8x expected, and implied vol increasing over 3 points to 32.37%. May-24 125 calls and May-24 115 calls are the most active options, with total volume in those strikes near 6,000 contracts. The Put/Call Ratio is 0.20. Earnings are expected on April 24th.