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Investing.com - Needham raised its price target on Bel Fuse (NASDAQ:BELFB) to $116.00 from $95.00 on Monday, while maintaining a Buy rating on the electronic components manufacturer. According to InvestingPro data, the stock is currently trading near its 52-week high of $100.52, with the RSI suggesting overbought conditions. The company’s shares have delivered an impressive 58% return over the past year.
The research firm expressed optimism about Bel Fuse’s business performance, noting it is tracking in line with expectations and could deliver upside as tariff headwinds recede.
Needham highlighted Bel Fuse’s growing exposure to the defense market, which represented approximately 38% of first-quarter revenues, along with a modest recovery in its commercial business, including networking.
The firm indicated that Bel’s Enercon defense business, located about 20 miles north of Tel Aviv, appears to have been largely unaffected by recent hostilities between Israel and Iran.
Needham believes Bel’s second-half 2024 acquisition of Enercon will prove to be well-timed as global defense budgets rise, while its legacy commercial business should benefit from new sales leadership.
In other recent news, Bel Fuse reported a strong performance for the first quarter of 2025, surpassing both earnings and revenue expectations. The company posted an earnings per share of $1.35, significantly beating the forecast of $1.06, while revenue reached $152.2 million, exceeding the anticipated $148.6 million. The Power Solutions segment led the growth with a 37.9% increase in sales, although Connectivity Solutions sales declined by 6.5%. Additionally, Bel Fuse’s gross margin improved to 38.6% from 37.5% in the same quarter last year.
The company’s recent acquisition of Enercon has been highlighted as a strategic move to bolster growth, with executives expressing optimism about future revenue synergies. Meanwhile, Baird initiated coverage on Bel Fuse with an Outperform rating and a price target of $88, citing the company’s solid operational foundation and growth strategies. The analysts at Baird also noted Bel Fuse’s potential for growth through mergers and acquisitions, as evidenced by the Enercon acquisition. Despite these positive developments, the company faces challenges from geopolitical tensions and tariffs, which could impact sales and margins.
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