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On Thursday, Needham analysts increased the price target for Bel Fuse (NASDAQ:BELFB) shares to $100 from the previous $95, while maintaining a Buy rating on the stock. According to InvestingPro data, this target suggests further upside potential from the current price of $81.53, with analyst targets ranging from $91 to $105. The firm highlighted Bel Fuse’s fourth-quarter revenue, which exceeded the top end of its guidance. This performance came even without including contributions from the recently acquired Enercon defense business, which was not part of the earlier forecasts.
Bel Fuse reported a 7% year-over-year increase in Q4 sales. However, when adjusted for the Enercon acquisition, sales were down 7.8% organically year-over-year. The company, with a market capitalization of $1.02 billion and trailing twelve-month revenue of $534.79 million, maintained strong financial health with a current ratio of 2.92. Despite this organic decline, the company’s revenues were still approximately 3% higher than anticipated, boosted by some orders that were moved forward from the first quarter.
The company has provided revenue guidance for Q1 that aligns with analysts’ expectations. This upcoming quarter will be the first to fully integrate the Enercon business. Additionally, it marks the final quarter for current CEO Dan Bernstein, who is set to pass on his role to CFO Farouq Tuweiq on May 27th.
Needham anticipates a resurgence of organic growth for Bel Fuse in 2025, which they believe will further demonstrate the company’s earning potential, especially with the inclusion of Enercon’s higher-margin aerospace and defense (A&D) business. The firm’s analyst reiterated a Buy rating, signaling confidence in Bel Fuse’s future performance.
In other recent news, Bel Fuse B Inc. reported impressive financial results for the fourth quarter of 2024, significantly exceeding market expectations. The company achieved an earnings per share (EPS) of $1.53, almost double the anticipated $0.7767, while revenue reached $149.9 million, surpassing the forecasted $123.21 million. This performance was bolstered by strategic acquisitions and a focus on emerging markets. Furthermore, the company improved its gross margin to 37.5% from 36.6% the previous year. Analysts have noted the company’s strong execution, with Oppenheimer and Northland Capital Markets expressing positive sentiments about future prospects. Additionally, Bel Fuse B’s recent acquisition of Enercon is expected to contribute positively to its revenue base. The company is also optimistic about growth opportunities in the AI and defense sectors for 2025, despite potential challenges from tariffs and geopolitical tensions.
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