- Telenor partners with Verdane to build a global IoT leader
May 12, 2026
Telenor
Telenor IoT / Telenor ConnexionBrand visual asset·GlobeNewswire Inc.
(Fornebu, Norway, 26 May 2026) Telenor has entered into an agreement with Verdane to establish a joint ownership structure over Telenor Connexion. The transaction values the company at SEK 7.5 billion. The partnership is intended to realise value from Telenor Connexion’s strong market position while providing the company with access to long-term growth capital through an efficient ownership structure.
Over the past 25 years, Telenor Connexion has built a strong global position in managed IoT services and connectivity solutions for large, global customers. The market is expected to grow at double digit rates towards 2030. Today, the company is a top ten player globally outside China, with 31 million IoT SIM cards in operation and deliveries to more than 200 countries.
“We have bold ambitions in managed IoT, and with Verdane as a partner we gain additional power to realise them in a much more capital efficient manner. At the same time, this transaction clearly demonstrates Telenor’s ability to create value,” says Benedicte Schilbred Fasmer, President & CEO of Telenor.
Telenor Connexion delivers IoT solutions for everything from cars and water pumps to robotic lawn mowers. In January 2026, Telenor consolidated its Nordic IoT operations under one brand structure, with Telenor Connexion as the specialised IoT unit operating under Telenor IoT as the portfolio brand.
“With this structure in place, we are well positioned for the next phase. Telenor will remain a long‑term, strategic owner, and we will continue to put the full industrial strength of the Group behind Telenor Connexion. Together with Verdane, we will scale the business more rapidly in a diligent way,” says Fasmer.
Combining industrial edge with experienced growth capital
The global IoT market is experiencing strong growth. Through this partnership, Telenor combines its industrial platform, global reach and strong customer relationships with Verdane’s financial resources, transaction experience and active ownership model. This structure supports long-term growth ambitions and allows Telenor to grow in a disciplined manner. The ambition is to strengthen Telenor Connexion’s global offering and accelerate growth through both organic expansion and value-creating acquisitions.
Pekka Lundmark, the former President and CEO of Nokia, has agreed to join Telenor Connexion as Independent Chair following closing of the transaction. Mats Lundquist will continue as Chief Executive Officer of Telenor Connexion, ensuring continuity in leadership and execution of the company’s growth strategy.
Story Continues
Bjarne Kveim Lie, Founder and Managing Partner at Verdane, said: "We are grateful to have built a partnership based on mutual trust with Telenor and look forward to working closely together in the years to come. We believe Telenor Connexion is perfectly positioned in a well-established structural growth market that will benefit from the increasing adoption of AI through exposure to connected devices in data-intensive industries”.
Morten Weicher, Partner at Verdane, said: "We look forward to supporting the Telenor Connexion team in realising their ambitious strategy of becoming a global leader, drawing on Verdane’s significant experience in scaling industrial technology companies and more than 15 years of experience as an investor in the IoT space.”
Financial highlights and transaction structure
In 2025, Telenor Connexion generated revenues of approximately SEK 1.3 billion and delivered an EBITDA of around SEK 415 million on a pro-forma basis after the consolidation of Managed IoT Connectivity across Telenor Group. As consideration following the transaction, Telenor will receive approximately SEK 3.8 billion in cash, in addition to a seller credit of approximately SEK 0.8 billion, and recognise a gain of approximately SEK 7.2 billion. Each party commits to invest an additional SEK 2 billion in the company’s value accretive growth journey, which for Telenor will be approximately half of the proceeds received upfront in the transaction.
Telenor Group’s divestment values Telenor Connexion’s enterprise value at 18x EBITDA for 2025. As part of the transaction, the new structure will incur approximately SEK 2.2 billion in new bank debt, implying an expected post‑transaction equity value of approximately SEK 5.3 billion for Telenor Connexion. The agreement also includes a potential earn‑out if the company meets certain commercial targets, increasing the company’s enterprise value by SEK 0.3 billion.
Following the transaction, Telenor Connexion will be reported as an associated company of Telenor Group. The parties will establish a jointly owned company with 50/50 percent ownership. The board will be comprised of two representatives from each owner, in addition to an independent chair. The parties expect to complete the transaction during 2026, subject to the necessary regulatory approvals.
As part of the transaction, Verdane will acquire Telenor’s ownership stakes in Telenor Amp’s portfolio companies BLDNG.ai and Whereby.
For additional information, please contact:
Frank Maaø, SVP Capital Markets and Investor Relations (+47 91674045)
David Fidjeland, Director Media Relations (+47 93467224)
About Telenor
Telenor Group is a leading telecommunications and technology company in the Nordics and Asia, serving over 200 million customers and generating annual revenues of around NOK 80 billion (2024). Telenor holds strong positions in its markets and is committed to responsible business conduct.
Driven by Telenor’s purpose, “With you, for a safer and smarter tomorrow”, we aim to create impact beyond connectivity by enabling societies to thrive in a digital future. Our cultural foundation is built on Trust, Curiosity, and Passion, guiding how we collaborate, innovate and deliver value for customers and communities.
Connectivity has been Telenor’s domain for more than 165 years, and today we combine that heritage with forward-looking solutions for security, sustainability and inclusion. Telenor is listed on the Oslo Stock Exchange under the ticker TEL. For more information, visit https://www.telenor.com.
About Verdane Verdane is a specialist growth buyout investment firm that partners with tech-enabled and sustainable businesses that help to digitalise and decarbonise the European economy. The flexible mandates of Verdane funds allow it to invest as a majority or minority control investor, replacement or growth capital, in single companies or in portfolios of companies
Verdane has raised EUR 10 billion in capital and its funds have made more than 200 investments in fast-growing businesses since 2003. Verdane’s team of over 180 investment professionals and operating experts is based out of Berlin, Copenhagen, London, Helsinki, Munich, Oslo and Stockholm and combines deep sector expertise with long-standing local networks and presence in core European markets.
Verdane is also a certified B Corporation, the most ambitious sustainability accreditation globally. The firm only backs businesses that pass its 2040 test, which indicates whether the company can thrive in a more sustainable future economy.
Verdane is partly owned by the Verdane Foundation, which is focused on two areas: climate change and more equitable and inclusive local communities.
More info: www.verdane.com
Follow Verdane on LinkedIn
Attachment
Telenor IoT / Telenor Connexion
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- Telenor inngår partnerskap med Verdane: bygger global IoT-leder
May 12, 2026
(Fornebu, 26. mai 2026) Telenor har inngått en avtale med Verdane om å etablere et felles eierskap i Telenor Connexion. Transaksjonen verdsetter selskapet til 7,5 milliarder svenske kroner. Partnerskapet skal realisere verdiene av Telenor Connexions sterke markedsposisjon, samtidig som selskapet får tilgang til langsiktig vekstkapital gjennom en effektiv eierstruktur.
Gjennom 25 år har Telenor Connexion bygget en sterk global posisjon innen administrerte IoT-tjenester og tilkoblingsløsninger for store, internasjonale kunder. Markedet forventes å vokse med tosifrede veksttall frem mot 2030. I dag er selskapet blant de ti største aktørene globalt utenfor Kina, med 31 millioner IoT-SIM-kort i drift og leveranser til mer enn 200 land.
– Vi har store ambisjoner innen IoT, og med Verdane som partner får vi ekstra kraft til å realisere dem på en langt mer kapitaleffektiv måte. Samtidig viser denne transaksjonen tydelig Telenors evne til å skape verdier, sier Benedicte Schilbred Fasmer, konserndirektør i Telenor.
Telenor Connexion leverer IoT‑løsninger til alt fra biler og vannpumper til robotgressklippere. I januar 2026 samlet Telenor sine nordiske IoT‑aktiviteter under én merkestruktur, med Telenor Connexion som den spesialiserte IoT‑enheten under Telenor IoT som porteføljemerke.
– Med denne strukturen på plass er vi godt posisjonert for neste fase. Telenor forblir en langsiktig, strategisk eier, og vi vil fortsette å stille konsernets industrielle tyngde bak Telenor Connexion. Sammen med Verdane skal vi skalere virksomheten raskere og på en disiplinert måte, sier Fasmer.
Industriell styrke kombinert med erfaren vekstkapital Det globale IoT-markedet opplever sterk vekst. Gjennom dette partnerskapet kombinerer Telenor sin industrielle plattform, globale rekkevidde og sterke kunderelasjoner med Verdanes finansielle ressurser, transaksjonserfaring og aktive eiermodell. Eierstrukturen støtter langsiktige vekstambisjoner og gir Telenor mulighet til å vokse på en disiplinert måte. Ambisjonen er å styrke Telenor Connexions globale tilstedeværelse og akselerere veksten gjennom både organisk ekspansjon og verdiskapende oppkjøp.
Pekka Lundmark, tidligere president og konsernsjef i Nokia, har takket ja til å bli styreleder i Telenor Connexion etter at transaksjonen er gjennomført. Mats Lundquist fortsetter som administrerende direktør i Telenor Connexion, noe som sikrer kontinuitet i ledelsen og gjennomføringen av selskapets vekststrategi.
– Vi er glade for å ha bygget et partnerskap tuftet på gjensidig tillit med Telenor, og ser frem til et tett samarbeid i årene som kommer. Telenor Connexion er etter vår mening unikt posisjonert i et veletablert vekstmarked. Økt bruk av kunstig intelligens vil drive etterspørselen etter tilkoblede enheter i dataintensive bransjer, og det er akkurat her Telenor Connexion leverer, sier Bjarne Kveim Lie, managing partner i Verdane.
– Vi ser frem til å støtte Telenor Connexion-teamet i å realisere deres ambisiøse strategi om å bli en global leder, og vil trekke på Verdanes betydelige erfaring med å skalere industrielle teknologiselskaper og mer enn 15 års erfaring som investor i IoT-markedet, sier Morten Weicher, partner i Verdane.
Finansielle nøkkeltall og transaksjonsstruktur I 2025 hadde Telenor Connexion driftsinntekter på om lag SEK 1,3 milliarder og leverte en EBITDA på rundt SEK 415 millioner på proforma‑basis, etter konsolideringen av Managed IoT Connectivity i Telenor‑konsernet. Som oppgjør i transaksjonen vil Telenor motta om lag SEK 3,8 milliarder i kontanter, i tillegg til en selgerkreditt på cirka SEK 0,8 milliarder, og resultatføre en gevinst på cirka SEK 7,2 milliarder. Hver part forplikter seg til å investere ytterligere to milliarder svenske kroner i selskapets vekstreise, noe som for Telenors del utgjør omtrent halvparten av det Telenor mottar ved gjennomføringen av transaksjonen.
Telenor Groups salg verdsetter Telenor Connexion til 18 ganger EBITDA for 2025. Som del av transaksjonen vil den nye strukturen ta opp ny bankgjeld på rundt SEK 2,2 milliarder, noe som innebærer en forventet egenkapitalverdi etter transaksjonen på cirka SEK 5,3 milliarder for Telenor Connexion. Avtalen inkluderer også en mulig tilleggsbetaling (earn‑out) dersom selskapet når visse kommersielle mål, som kan øke foretakets verdi med SEK 0,3 milliarder.
Etter gjennomføringen av transaksjonen vil Telenor Connexion bli rapportert som et tilknyttet selskap i Telenor-konsernet. Partene vil etablere et selskap med 50/50‑eierskap. Styret vil bestå av to representanter fra hver eier, i tillegg til en uavhengig styreleder. Partene forventer å gjennomføre transaksjonen i løpet av 2026, forutsatt nødvendige regulatoriske godkjenninger.
Som en del av transaksjonen vil Verdane også overta Telenors eierandeler i Telenor Amp sine porteføljeselskaper BLDNG.ai og Whereby.
For ytterligere informasjon, kontakt:Frank Maaø, IR-sjef (+47 91674045)
David Fidjeland, Informasjonssjef (+47 93467224)
Om Telenor
Telenor er et ledende telekommunikasjons- og teknologiselskap i Norden og Asia, som med over 200 millioner kunder og årlige inntekter på rundt 80 milliarder kroner (2024). Telenor har sterke posisjoner i sine markeder og er forpliktet til ansvarlig forretningsdrift.
Drevet av Telenors visjon, «Med deg, for en tryggere og enklere morgendag», har vi som mål å skape verdi ved å bidra til at samfunn kan blomstre i en digital fremtid. Vår kulturelle grunnmur er bygget på tillit, nysgjerrighet og lidenskap, som styrer hvordan vi samarbeider, innoverer og leverer verdi til kunder og lokalsamfunn.
Å knytte verden tettere sammen har vært Telenors domene i mer enn 165 år, og i dag kombinerer vi denne arven med fremtidsrettede løsninger for sikkerhet, bærekraft og inkludering. Telenor er notert på Oslo Børs under ticker TEL. For mer informasjon, besøk https://www.telenor.com.
Om Verdane Verdane er et spesialisert investeringsselskap innen vekstorienterte oppkjøp, som samarbeider med teknologidrevne og bærekraftige virksomheter som bidrar til å digitalisere og avkarbonisere den europeiske økonomien. Verdanes fleksible mandater gjør det mulig å investere som majoritets- eller minoritetseier, med omstillings- eller vekstkapital, i enkeltselskaper eller porteføljer av selskaper.
Verdane har hentet inn 10 milliarder euro i kapital, og fondene har gjennomført mer enn 200 investeringer i raskt voksende virksomheter siden 2003. Verdanes team på over 180 investerings- og drift eksperter er lokalisert i Berlin, København, London, Helsinki, München, Oslo og Stockholm, og kombinerer dyp sektorkompetanse med langvarige lokale nettverk og tilstedeværelse i kjernemarkeder i Europa.
Verdane er også sertifisert B Corporation – den mest ambisiøse bærekraftssertifiseringen globalt. Selskapet investerer kun i virksomheter som består deres 2040-test, som vurderer om selskapet vil trives i en mer bærekraftig fremtidig økonomi.
Verdane er delvis eid av Verdane-stiftelsen, som fokuserer på to områder: klimaendringer og mer rettferdige og inkluderende lokalsamfunn.
Mer informasjon: www.verdane.com
Følg Verdane på LinkedIn
Vedlegg
Telenor IoT / Telenor Connexion
- Telenor partners with Verdane to build a global IoT leader
May 12, 2026
(Fornebu, Norway, 26 May 2026) Telenor has entered into an agreement with Verdane to establish a joint ownership structure over Telenor Connexion. The transaction values the company at SEK 7.5 billion. The partnership is intended to realise value from Telenor Connexion’s strong market position while providing the company with access to long-term growth capital through an efficient ownership structure.
Over the past 25 years, Telenor Connexion has built a strong global position in managed IoT services and connectivity solutions for large, global customers. The market is expected to grow at double digit rates towards 2030. Today, the company is a top ten player globally outside China, with 31 million IoT SIM cards in operation and deliveries to more than 200 countries.
“We have bold ambitions in managed IoT, and with Verdane as a partner we gain additional power to realise them in a much more capital efficient manner. At the same time, this transaction clearly demonstrates Telenor’s ability to create value,” says Benedicte Schilbred Fasmer, President & CEO of Telenor.
Telenor Connexion delivers IoT solutions for everything from cars and water pumps to robotic lawn mowers. In January 2026, Telenor consolidated its Nordic IoT operations under one brand structure, with Telenor Connexion as the specialised IoT unit operating under Telenor IoT as the portfolio brand.
“With this structure in place, we are well positioned for the next phase. Telenor will remain a long‑term, strategic owner, and we will continue to put the full industrial strength of the Group behind Telenor Connexion. Together with Verdane, we will scale the business more rapidly in a diligent way,” says Fasmer.
Combining industrial edge with experienced growth capital
The global IoT market is experiencing strong growth. Through this partnership, Telenor combines its industrial platform, global reach and strong customer relationships with Verdane’s financial resources, transaction experience and active ownership model. This structure supports long-term growth ambitions and allows Telenor to grow in a disciplined manner. The ambition is to strengthen Telenor Connexion’s global offering and accelerate growth through both organic expansion and value-creating acquisitions.
Pekka Lundmark, the former President and CEO of Nokia, has agreed to join Telenor Connexion as Independent Chair following closing of the transaction. Mats Lundquist will continue as Chief Executive Officer of Telenor Connexion, ensuring continuity in leadership and execution of the company’s growth strategy.
Bjarne Kveim Lie, Founder and Managing Partner at Verdane, said: "We are grateful to have built a partnership based on mutual trust with Telenor and look forward to working closely together in the years to come. We believe Telenor Connexion is perfectly positioned in a well-established structural growth market that will benefit from the increasing adoption of AI through exposure to connected devices in data-intensive industries”.
Morten Weicher, Partner at Verdane, said: "We look forward to supporting the Telenor Connexion team in realising their ambitious strategy of becoming a global leader, drawing on Verdane’s significant experience in scaling industrial technology companies and more than 15 years of experience as an investor in the IoT space.”
Financial highlights and transaction structure
In 2025, Telenor Connexion generated revenues of approximately SEK 1.3 billion and delivered an EBITDA of around SEK 415 million on a pro-forma basis after the consolidation of Managed IoT Connectivity across Telenor Group. As consideration following the transaction, Telenor will receive approximately SEK 3.8 billion in cash, in addition to a seller credit of approximately SEK 0.8 billion, and recognise a gain of approximately SEK 7.2 billion. Each party commits to invest an additional SEK 2 billion in the company’s value accretive growth journey, which for Telenor will be approximately half of the proceeds received upfront in the transaction.
Telenor Group’s divestment values Telenor Connexion’s enterprise value at 18x EBITDA for 2025. As part of the transaction, the new structure will incur approximately SEK 2.2 billion in new bank debt, implying an expected post‑transaction equity value of approximately SEK 5.3 billion for Telenor Connexion. The agreement also includes a potential earn‑out if the company meets certain commercial targets, increasing the company’s enterprise value by SEK 0.3 billion.
Following the transaction, Telenor Connexion will be reported as an associated company of Telenor Group. The parties will establish a jointly owned company with 50/50 percent ownership. The board will be comprised of two representatives from each owner, in addition to an independent chair. The parties expect to complete the transaction during 2026, subject to the necessary regulatory approvals.
As part of the transaction, Verdane will acquire Telenor’s ownership stakes in Telenor Amp’s portfolio companies BLDNG.ai and Whereby.
For additional information, please contact:
Frank Maaø, SVP Capital Markets and Investor Relations (+47 91674045)
David Fidjeland, Director Media Relations (+47 93467224)
About Telenor
Telenor Group is a leading telecommunications and technology company in the Nordics and Asia, serving over 200 million customers and generating annual revenues of around NOK 80 billion (2024). Telenor holds strong positions in its markets and is committed to responsible business conduct.
Driven by Telenor’s purpose, “With you, for a safer and smarter tomorrow”, we aim to create impact beyond connectivity by enabling societies to thrive in a digital future. Our cultural foundation is built on Trust, Curiosity, and Passion, guiding how we collaborate, innovate and deliver value for customers and communities.
Connectivity has been Telenor’s domain for more than 165 years, and today we combine that heritage with forward-looking solutions for security, sustainability and inclusion. Telenor is listed on the Oslo Stock Exchange under the ticker TEL. For more information, visit https://www.telenor.com.
About Verdane Verdane is a specialist growth buyout investment firm that partners with tech-enabled and sustainable businesses that help to digitalise and decarbonise the European economy. The flexible mandates of Verdane funds allow it to invest as a majority or minority control investor, replacement or growth capital, in single companies or in portfolios of companies
Verdane has raised EUR 10 billion in capital and its funds have made more than 200 investments in fast-growing businesses since 2003. Verdane’s team of over 180 investment professionals and operating experts is based out of Berlin, Copenhagen, London, Helsinki, Munich, Oslo and Stockholm and combines deep sector expertise with long-standing local networks and presence in core European markets.
Verdane is also a certified B Corporation, the most ambitious sustainability accreditation globally. The firm only backs businesses that pass its 2040 test, which indicates whether the company can thrive in a more sustainable future economy.
Verdane is partly owned by the Verdane Foundation, which is focused on two areas: climate change and more equitable and inclusive local communities.
More info: www.verdane.com
Follow Verdane on LinkedIn
Attachment
Telenor IoT / Telenor Connexion
- Amphenol Drops 12% in a Month: Should You Buy the Stock on the Dip?
May 11, 2026
Amphenol APH shares have dropped 12.3% in the past month, underperforming the Zacks Computer and Technology sector’s return of 16.4%. The weakness reflects concerns over a challenging macroeconomic backdrop, rising geopolitical risks and elevated debt levels (total debt rose to about $18.7 billion at the end of Q1’26), following the acquisition of CommScope’s Connectivity and Cable Solutions (CCS) business, and growing tax-related headwinds. Investors have also been wary of potential integration risks tied to the CCS deal, while intensifying competition in optical interconnect and AI data-center connectivity markets remains a key concern.
Despite these challenges, APH continues to benefit from accelerating AI infrastructure spending, supported by a diversified business model and an expanding portfolio strengthened through multiple acquisitions. The company exited first-quarter 2026 with record orders of $9.4 billion and a book-to-bill ratio of 1.24x. Do these positives outweigh the risks, and does the recent pullback present a buying opportunity for investors? Let’s take a closer look.
Amphenol’s Strong Portfolio to Steer Off Competition
APH shares have lagged close competitors Broadcom AVGO and Coherent COHR year to date (YTD), but outperforms TE Connectivity TEL. While shares of TE Connectivity have declined 9.4%, Broadcom and Coherent returned 23.6% and 94.3%, respectively, YTD. In contrast, Amphenol shares have dropped 5.3%. The company’s expanding AI infrastructure portfolio and diversified business are expected to boost share price performance in 2026.
APH Stock’s Price PerformanceZacks Investment Research
Image Source: Zacks Investment Research
Amphenol has expanded its portfolio and market reach through targeted acquisitions across communications, medical and defense verticals. Plethora of acquisitions — Trexon, Rochester sensors, CIT, Lutze, CommScope’s Andrew business, LifeSync, Narda-MITEQ, XMA, Q Microwave, and others — have been driving Amphenol’s prospects. In fact, these acquisitions now allow Amphenol to offer high-speed copper, power interconnects, active and passive copper, active optics and fiber connectivity through CCS. On the first-quarter 2026 earnings call, management repeatedly emphasized that APH now has the “broadest range” of interconnect products across future AI architectures, and this creates a continued long-term growth opportunity.
Moreover, a diversified end-market bodes well for APH’s top-line growth prospects. IT datacom contributed 41% of sales in the first quarter of 2026, while industrial (20%), automotive (11%), defense (8%), commercial aerospace (4%), mobile devices (4%) and communications networks (12%) all contributed meaningfully to the quarterly revenues. This reduces APH’s reliance on any single end market as well as AI, as roughly 60% of sales came from non-IT datacom markets. Amphenol guided for another low teens sequential increase in Q2’26 for IT datacom as AI data center investments continue accelerating. Non-IT datacom markets like Defense and Industrial are now expected to grow high-single digit each for Q2’26.
Story Continues
Strong Liquidity to Boost APH’s Growth Trajectory
Amphenol generates solid cash flow, which allows management the opportunity to invest in product innovations, acquisitions and business development. As of March 31, 2026, Amphenol had $4.6 billion of cash, cash equivalents and short-term investments, down from $11.4 billion as of Dec. 31, 2025, mainly because cash and debt proceeds were used to fund the CCS acquisition.
The company also had no borrowings outstanding under either its revolving credit facility or commercial paper programs at quarter-end, giving APH additional liquidity flexibility. Total liquidity at the end of the first quarter of 2026 was $7.6 billion.
Cash generation remains strong with operating cash flow of $1.1 billion in the first quarter (120% of net income) and free cash flow of $831 million (89% of net income). Amphenol expects strong cash flow generation to continue in 2026.
APH’s 2Q’26 Earnings Estimate Revision Shows Rising Trend
Amphenol expects second-quarter 2026 earnings between $1.14 and $1.16 per share, indicating growth between 41% and 43% year over year. Revenues are anticipated between $8.1 billion and $8.2 billion, suggesting growth in the 43-45% range.
The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.15 per share, up 9.5% over the past 30 days and indicating 42% growth over the year-ago quarter’s reported figure. The consensus mark for second-quarter 2026 revenues is pegged at $8.18 billion, suggesting 44.8% growth from the year-ago quarter’s reported figure.
Amphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
APH Shares are Trading at a Premium
Amphenol has a stretched valuation as suggested by a Value Score of D.
In terms of the forward 12-month price-to-earnings (P/E), APH is trading at 25.27X higher than the Zacks Electronics Connectors industry’s 25.27X and TE Connectivity’s 17.02X but lower than Coherent’s 46.46X and Broadcom’s 29.07X.
APH Stock’s ValuationZacks Investment Research
Image Source: Zacks Investment Research
Conclusion
Amphenol’s diversified end-market exposure, expanding interconnect portfolio and strong acquisition execution continue to support solid growth visibility. These factors justify a premium valuation despite a challenging macroeconomic environment and rising debt levels.
APH currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amphenol Corporation (APH) : Free Stock Analysis Report
TE Connectivity Ltd. (TEL) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Coherent Corp. (COHR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- Has TE Connectivity (TEL) Run Too Far After 40% Gain Despite Recent Pullback?
May 9, 2026
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Wondering if TE Connectivity at about US$210 per share is offering fair value right now, or if the price has moved ahead of what the fundamentals might support. The stock has seen a 40.1% return over the last year and 83.8% over three years, even though the year to date return stands at a 9.9% decline and the last month shows a 0.4% slip. Recent coverage has focused on TE Connectivity's role as a key supplier of connectivity and sensor solutions across sectors such as autos, industrial equipment and communications. This helps explain why the stock has attracted attention after such strong multi year returns, and investors are weighing how this positioning might relate to future demand and whether the current share price already reflects that backdrop. Currently, TE Connectivity scores a 4 out of 6 valuation score. The next step is to look at how different methods such as DCF, multiples and sector comparisons line up, and then consider an even more rounded way to think about valuation that will be covered at the end of this article.
Find out why TE Connectivity's 40.1% return over the last year is lagging behind its peers.
Approach 1: TE Connectivity Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model projects a company’s future cash flows and discounts them back to today’s dollars to estimate what the business may be worth right now.
For TE Connectivity, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections expressed in $. The latest twelve month free cash flow is about $3.5b. Analyst forecasts and extrapolated estimates point to projected free cash flow of about $4.2b by 2030, with interim annual projections between 2026 and 2035 ranging from around $3.2b to $4.9b before discounting.
When all those projected cash flows are discounted back, the model arrives at an estimated intrinsic value of about $197.26 per share. Compared with the current share price of roughly $210, the DCF output suggests TE Connectivity is around 6.5% overvalued, which is a relatively small gap and within a reasonable margin of error for this kind of model.
Result: ABOUT RIGHT
TE Connectivity is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act.TEL Discounted Cash Flow as at May 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for TE Connectivity.
Story Continues
Approach 2: TE Connectivity Price vs Earnings
For a profitable company like TE Connectivity, the P/E ratio is a useful shorthand for how much you are paying for each dollar of current earnings. It ties directly to what the business is earning today, which many investors treat as a core anchor for valuation.
What counts as a “normal” P/E depends on how the market views a company’s growth prospects and risks. Higher expected growth or lower perceived risk can justify a higher multiple, while slower growth or higher risk tends to point to a lower one.
TE Connectivity trades on a P/E of about 21.1x, compared with the Electronic industry average of about 26.5x and a peer group average of roughly 59.5x. Simply Wall St’s Fair Ratio framework estimates a P/E of about 31.8x for this stock, based on factors such as its earnings growth profile, industry, profit margins, market cap and company specific risks.
This Fair Ratio approach is more tailored than a simple peer or industry comparison because it adjusts for the company’s own fundamentals instead of assuming all peers deserve similar multiples. With the current P/E at 21.1x versus a Fair Ratio of 31.8x, the shares screen as undervalued on this metric.
Result: UNDERVALUEDNYSE:TEL P/E Ratio as at May 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 18 top founder-led companies.
Upgrade Your Decision Making: Choose your TE Connectivity Narrative
Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St take the story you believe about TE Connectivity, link it to explicit forecasts for revenue, earnings and margins, convert that into a Fair Value, then keep it updated as new news or earnings arrive. This allows you to compare that Fair Value with today’s price and decide whether the stock suits you right now, whether you lean toward a more cautious view around a Fair Value near US$220 or a more optimistic view closer to US$340 on the Community page used by millions of investors.
Do you think there's more to the story for TE Connectivity? Head over to our Community to see what others are saying!NYSE:TEL 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TEL.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Implied Volatility Surging for TE Connectivity Stock Options
May 8, 2026
Investors in TE Connectivity plc TEL need to pay close attention to the stock based on moves in the options market lately. That is because the May 15, 2026 $120 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for TE Connectivity shares, but what is the fundamental picture for the company? Currently, TE Connectivity is a Zacks Rank #2 (Buy) in the Electronics - Miscellaneous Components industry that ranks in the Top 34% of our Zacks Industry Rank. Over the last 30 days, our Zacks Consensus Estimate for the current quarter from $2.71 per share to $2.81 in that period.
Given the way analysts feel about TE Connectivity right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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- RF Industries Gains From Diversification and Backlog Growth
May 8, 2026
RF Industries, Ltd. RFIL entered fiscal 2026 on a solid footing, supported by a broader customer mix, expanding product offerings and a rapidly growing backlog. Although first-quarter revenues of nearly $19 million were slightly below the prior-year period, management emphasized that the business is now far more diversified across products, customers and end markets, reducing reliance on large one-time telecom projects.
The company’s strategy of expanding beyond traditional wireless infrastructure is beginning to deliver meaningful results. RF Industries is seeing increasing traction in aerospace, industrial, medical, government and edge data center markets. Its direct air cooling (DAC) systems have emerged as a notable growth driver, particularly as operators seek energy-efficient cooling solutions for edge network infrastructure. Management noted that these systems can significantly reduce energy consumption while improving reliability, creating opportunities in cable, wireline and data center applications.
Another encouraging sign was the sharp increase in backlog, which climbed to $18.6 million from $12.4 million reported in January. The growth was supported by healthy demand across multiple product lines, including integrated systems, custom cabling and thermal cooling solutions. Management believes this stronger order pipeline provides improved visibility and supports expectations for growth acceleration in the second half of fiscal 2026.
Profitability also improved meaningfully during the quarter. Gross margin expanded 250 basis points to 32.3%, while adjusted EBITDA increased 22% year over year. The improvement reflected better pricing, operational efficiencies and the company’s asset-light operating structure, which allows it to scale production without major increases in overhead costs.
Competition Remains Strong in RF Connectivity Markets
Amphenol Corporation APH is one of the largest competitors to RF Industries in RF connectors, custom cable assemblies and wireless infrastructure solutions. The company serves telecom, aerospace, industrial and data-center markets globally, benefiting from a highly diversified business model and broad interconnect portfolio. Amphenol continues to gain from investments tied to AI infrastructure, edge computing and next-generation network deployments, making it a strong rival to RFIL’s expanding connectivity and thermal management operations.
TE Connectivity plc TEL is another major competitor, providing connectors, sensors and networking solutions across communications, industrial, aerospace and defense markets. TE Connectivity’s extensive product portfolio and engineering expertise position it well to benefit from the rising demand for high-speed data transmission and advanced network infrastructure. Its global scale and long-standing customer relationships create competitive pressure for RF Industries as the company expands its custom cabling, integrated systems and edge-network cooling businesses.
Story Continues
RFIL’s Price Performance, Valuation & Estimates
Shares of RF Industries have surged 111.4% over the past six months against the industry’s 1.6% decline.
RFIL 1-Year Price PerformanceZacks Investment Research
Image Source: Zacks Investment Research
From a valuation standpoint, RFIL trades at a forward price-to-earnings ratio of 30.41, higher than the industry’s average of 12.75.
P/E (F12M)Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RFIL’s 2026 sales and earnings implies a year-over-year uptick of 7.5% and 45%, respectively.Zacks Investment Research
Image Source: Zacks Investment Research
RFIL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Amphenol Corporation (APH) : Free Stock Analysis Report
TE Connectivity Ltd. (TEL) : Free Stock Analysis Report
RF Industries, Ltd. (RFIL) : Free Stock Analysis Report
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- Implied Volatility Surging for TE Connectivity Stock Options
May 8, 2026 · zacks.com
Investors need to pay close attention to TEL stock based on the movements in the options market lately.
- APH's Communication Solutions Sales Accelerate: More Upside Ahead?
May 6, 2026
Amphenol APH is riding on strong Communications Solutions segment performance that accounted for 59.5% of first-quarter 2026 sales. Communication Solutions segment sales rose 88% year over year and 47% organically to $4.5 billion in the first quarter of 2026.
The key driver behind this surge is the rapid expansion of next-generation data centers, AI compute infrastructure and advanced communications networks. Communication Solutions' outstanding year-over-year sales growth was primarily driven by exceptional growth in the IT datacom market, which was fueled by accelerating demand for AI-related applications and continued strength in the base datacom business.
APH highlighted that IT datacom represented a significant portion of sales in the reported quarter (around 41% of overall revenue), driven by large-scale investments in AI infrastructure and data center expansion. Communications networks provided additional lift, boosted by higher operator spending and the integration of the Andrew acquisition.
Growth in the Communication Solutions segment was supported by the contribution of recent acquisitions, particularly CommScope. The acquisition strengthened Amphenol’s position in high-speed copper, fiber optics and power interconnect solutions, especially across data center and communications networks applications. In addition, the Andrew acquisition expanded the company’s exposure to wireless and communications infrastructure markets, contributing to the segment’s overall scale and diversification.
The Communication Solutions segment operating margin expanded 320 basis points (bps) year over year to 30.6%, primarily due to a combination of volume-driven leverage and execution strength, despite cost pressures and the dilutive impact of acquisitions.
With AI architectures growing more complex and bandwidth needs accelerating globally, Amphenol’s Communication Solutions segment is positioned at the center of a multi-year infrastructure expansion. The Zacks Consensus Estimate for Communication Solutions revenues is pegged at $18.6 billion for 2026, indicating a jump of 54.3% from the figure reported in 2025.
Amphenol Faces Stiff Competition
Amphenol is increasingly challenged by major rivals such as TE Connectivity TEL and Astera Labs ALAB.
TE Connectivity is a major competitor to Amphenol, offering connectors, sensors and high-speed interconnects across automotive, industrial, aerospace and communications markets. Supported by a global presence, strong customer relationships and acquisitions, TE Connectivity is expanding in AI and EV platforms. In the second quarter of fiscal 2026, TEL posted revenues of $4.74 billion, up 15% year over year (7% organic), with the adjusted operating margin rising 130 bps to 22%.
Astera Labs is emerging as a strong challenger to Amphenol, driven by its focus on PCIe 6 and CXL solutions for AI infrastructure. The Aries, Taurus and Scorpio platforms support high-speed, low-latency connectivity for next-gen GPUs. In the first quarter of 2026, Astera Labs reported revenues of $308.4 million, up 14% sequentially and 93% year over year, with a non-GAAP operating margin of 36.2%.
Story Continues
APH’s Share Price Performance, Valuation & Estimates
Amphenol’s shares have gained 2.8% year to date, underperforming the broader Zacks Computer & Technology sector’s return of 12%.
APH Stock’s Price PerformanceZacks Investment Research
Image Source: Zacks Investment Research
Amphenol shares are trading at a premium, as suggested by a Value Score of D. In terms of the forward 12-month price-to-earnings (P/E), APH is trading at 28.55X, higher than the sector’s 27.21.
APH Stock Is OvervaluedZacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2026 earnings is pegged at $4.62 per share, an upward revision of 7.4% over the past 30 days. The figure indicates a 38.32% increase year over year.
Amphenol Corporation Price and ConsensusAmphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
APH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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- Zacks.com featured highlights include Ross Stores, TE Connectivity, Broadcom, Corning and Arista Networks
May 6, 2026
For Immediate Release
Chicago, IL – May 6, 2026 – Stocks in this week’s article are Ross Stores, Inc. ROST, TE Connectivity plc TEL, Broadcom Inc. AVGO, Corning Inc. GLW and Arista Networks, Inc. ANET.
5 Stocks with High ROE to Buy as Markets Battle Intense Volatility
The broader equity markets witnessed intense volatility over the past few days as stalled negotiations for a U.S.-Iran peace deal and a fragile ceasefire between the two warring countries came under strain following reported drone and missile attacks by Iran on the UAE. This sent oil prices spiraling, fueling instability among investors.
A solid quarterly earnings performance by Apple spurred a sharp market rally to negate the losses to some extent. However, equity markets went downhill as President Trump scrapped plans to send a U.S. special envoy for peace talks in Pakistan. The continuation of the Iran blockade and restrictions in the Strait of Hormuz compounded the stock market misery, as oil prices went up steadily.
All these developments fueled intense volatility, with uncertainty being the order of the day. As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios, such as return on equity (ROE).
A high ROE ensures that the company is reinvesting cash at a high rate of return. Ross Stores, Inc., TE Connectivity plc, Broadcom Inc., Corning Inc. and Arista Networks, Inc. are some of the stocks with high ROE to profit from.
Why ROE?
ROE = Net Income/Shareholders’ Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry; the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management’s efficiency in rewarding shareholders with attractive risk-adjusted returns.
Here are five of the 20 stocks that qualified the screening:
Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices at generally 20% to 60% below the regular prices of most department and specialty stores.
Story Continues
The company has a long-term earnings growth expectation of 10% and delivered a trailing four-quarter earnings surprise of 6.2%, on average. Ross carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TE Connectivity: Based in Galway, Ireland, TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy and medical. With operations in more than 130 countries, TE Connectivity focuses on emerging technologies such as 5G, electric vehicles, industrial automation and smart cities to position itself at the forefront of connectivity advancements.
The company has a long-term earnings growth expectation of 12.5%. It delivered a trailing four-quarter earnings surprise of 6%, on average. TE Connectivity carries a Zacks Rank #2.
Broadcom: Headquartered in San Jose, CA, Broadcom develops a broad range of semiconductor solutions for enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
The company has a long-term earnings growth expectation of 48.6%. It delivered a trailing four-quarter earnings surprise of 1.9%, on average. Broadcom currently carries a Zacks Rank #2.
Corning: New York-based Corning started out as a glass business that was reincorporated in 1936. The company has since developed its glass technologies to produce advanced glass substrates used in a wide range of applications across various markets. Corning’s competitive strength lies in its focus on innovation.
The company has a long-term earnings growth expectation of 22.1%. It delivered a trailing four-quarter earnings surprise of 2.4%, on average. Corning carries a Zacks Rank #2 at present.
Arista: Santa Clara, CA-based Arista is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company holds a leadership position in 100-gigabit Ethernet switching for the high-speed datacenter segment. It is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
The company has a long-term earnings growth expectation of 17.9%. It delivered a trailing four-quarter earnings surprise of 9%, on average. Arista carries a Zacks Rank #2.
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Corning Incorporated (GLW) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
TE Connectivity Ltd. (TEL) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
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