Littelfuse Earnings: We Push Out Our Recovery Thesis but Shares Remain Attractive

We maintain our $295 fair value estimate for shares of narrow-moat Littelfuse as we push out our recovery thesis but maintain our long-term confidence in the firm. Littelfuse is seeing broadly weaker demand across its served markets, particularly for industrial applications. We view softer demand as cyclical and like Littelfuse’s opportunity longer term as a beneficiary of electrification. We now expect a slower year of growth in 2025 as demand takes longer to recover but forecast a stronger rebound in 2026. Shares dipped about 3% intraday on soft guidance, and we continue to believe investors have a good entry point on Oct. 30 for a high-quality stock with strong long-term prospects.