Littelfuse stock price target cut to $275 by Oppenheimer

Published 30/04/2025, 22:14
Littelfuse stock price target cut to $275 by Oppenheimer

On Wednesday, Oppenheimer adjusted its price target for Littelfuse Inc (NASDAQ:LFUS) to $275 from the previous $310, while maintaining an Outperform rating on the company’s shares. The revision follows Littelfuse’s report of a robust earnings beat, with significant outperformance in the Electronics and Industrial segments. The company’s operational profits, particularly in Electronics, surpassed expectations, with modest gains in Transportation and Industrial. With a market capitalization of $4.5 billion and EBITDA of $413 million in the last twelve months, InvestingPro analysis suggests the stock is currently undervalued despite trading at a P/E ratio of 44.5x.

Littelfuse’s guidance for the second quarter aligns with the consensus for sales and earnings per share at the midpoint, although Oppenheimer’s estimates were higher. This forecast incorporates a cautious approach due to potential uncertainties in trade and demand that could arise later in the second quarter and into the second half of 2025. Despite the strong positive book-to-bill ratio for all three segments in the first quarter, the company anticipates a scaling back from the current momentum. InvestingPro data shows the company maintains strong liquidity with a current ratio of 3.88, positioning it well to navigate market uncertainties. Subscribers can access 8 additional ProTips and comprehensive financial metrics on the platform.

The company has expressed confidence in mitigating any earnings impact from tariffs in the first-quarter outlook. Littelfuse is strategically positioned for a full recovery from pricing adjustments, including both list prices and surcharges. They also have the flexibility to modify sourcing options and logistics to adapt to changing circumstances. This includes maintaining close communication with customers regarding shipping locations as part of their response strategies to tariffs.

Littelfuse’s performance and guidance suggest a strategic approach to navigating the current economic environment, with measures in place to offset potential disruptions from trade policy changes. The company’s ability to adjust its operations and maintain strong communication with its customers is indicative of its resilience and proactive management in the face of potential challenges.

In other recent news, Littelfuse Inc. reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $2.19, compared to the forecasted $2.11. The company also exceeded revenue projections, reporting $554 million against an anticipated $540.97 million. This performance reflects a 4% year-over-year revenue increase. The company continues to see strong demand in the data center and grid storage markets, although there is some uncertainty in automotive and personal electronics demand. Littelfuse provided guidance for the second quarter of 2025, with expected sales between $565 million and $595 million, and an EPS range of $2.10 to $2.40. For the full year, Littelfuse anticipates approximately 2% total sales growth and capital expenditures between $90 million and $95 million. The company also plans to leverage its global footprint to mitigate tariff impacts, with no material effect expected on second-quarter earnings.

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