Shares of Amphenol (APH) are up 36% in 2012.
Amphenol is a designer, manufacturer and marketer of electrical, electronic and fiber optic connectors.
The defense segment accounts for 12% of the company revenues but generates about 25% of its operating margin, according to the analyst. The segment has underperformed more recently due to uncertainty about the future of defense spending."We believe a Romney win will likely be a positive for defense spending and hence for Amphenol's defense-centric revenues and earnings per share (12% and 20%, respectively)," analyst Amit Daryanani wrote. He expects that the removal of these overhangs would also allow the company to command a higher multiple in the market. Nine analysts rate the stock a buy or outperform, while five analysts maintain a hold rating. Two analysts have an underperform or sell rating on the stock.