Luke Junk, an analyst from Robert W. Baird, maintained the Hold rating on Littelfuse (LFUS – Research Report). The associated price target is $270.00.
Luke Junk has given his Hold rating due to a combination of factors affecting the performance and outlook of Littelfuse’s stock. His analysis indicates that despite a slight improvement in the passive components industry momentum during the previous month, this improvement was not sustained into November. The proprietary tracker used by Baird Equity Research shows a year-over-year decline and a sequential softening on a two-year stack basis, suggesting that the positive momentum needed for a trend change in Littelfuse’s market has not yet materialized. This lack of inflection in passive component momentum, which serves as a leading indicator, leads Junk to maintain a cautious stance on the stock.
Furthermore, the report indicates that while the current quarter’s expectations for the Electronics segment are aligned with the observed industry trend, there is still uncertainty regarding a potential bottom forming in the mid-2024 cycle. Since the passive components index has historically been a leading indicator for Littelfuse’s performance, its current state of ‘bouncing along the bottom’ implies that the anticipated recovery may not occur as soon as some investors might expect. This ongoing uncertainty and the need for greater conviction in the industry’s recovery trajectory support Junk’s decision to rate Littelfuse with a Hold.
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Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LFUS in relation to earlier this year.
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Littelfuse (LFUS) Company Description:
Littelfuse, Inc. engages in supplying of circuit protection products for the electronics, automotive and electrical industries. The company offers electromechanical and electronic switch and control devices for commercial and specialty vehicles and sensors for automobile safety systems. It operates through the following segments: Electronics, Automotive, and Industrial. The Electronics segment includes the broadest and deepest portfolio of overvoltage and overcurrent solutions. The Automotive segment maintains a direct sales force to service all the major automotive OEMs and system suppliers domestically. The Industrial segment consists of power fuses and holders, protection relays and controls and other circuit protection products for use in various industrial applications such as oil, gas, mining, alternative energy, electric vehicle infrastructure, non-residential construction, HVAC systems, elevators and other industrial equipment. The company was founded by Edward V. Sundt in 1927 and is headquartered in Chicago, IL.
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