Analyst Note| William Kerwin |
Narrow-moat Littelfuse blew its guidance out of the water on both the top and bottom lines in its first quarter and guided to continued sequential sales growth in the second quarter. We’re raising our fair value estimate to $260 from $245 to incorporate quicker rebounds for all its end markets. Littelfuse is executing well even in the face of continued COVID-19 headwinds and supply chain bottlenecks, and we expect the firm to continue outpacing its markets via growing content in end products. We currently view shares as fully valued and would recommend a greater margin of safety to invest.