Littelfuse’s Strong 2022 Continues and Shares Are at a Bargain

We maintain our $318 fair value estimate for narrow-moat Littelfuse after reporting good third-quarter results. Littelfuse is broadly still enjoying strong demand across its end markets, and supply constraints are slowly alleviating. We anticipate that demand will wane further into 2023, but we believe Littelfuse is well positioned to navigate a softer environment with sticky, vital products. Long term, we remain confident in trends toward high-voltage electric vehicles and renewable energy infrastructure to drive demand and end market outperformance for Littelfuse. We think the current share price ignores this long-term opportunity and overweights the firm’s semiconductor exposure. We see meaningful upside for investors.