We Think Littelfuse Will Benefit From Secular Trends Driving Electrification Across Its End Markets

Littelfuse is a leading provider of passive electronic components, providing a bevy of circuit protection and power management products into the end markets of transportation, industrial, telecommunications, and consumer electronics. While the firm is a smaller player than other competitors in the components market under our coverage, it has aligned its portfolio toward secular themes of safety, efficiency, and connectivity to pursue growth. We think Littelfuse’s best organic growth opportunities will come from vehicle electrification; battery electric vehicles require five times the circuit protection content of an internal combustion counterpart, and charging infrastructure presents a lucrative opportunity for the firm’s growing power semiconductor business.