Analyst Note| Brian Colello, CPA |
Littelfuse reported a lighter drop in revenue than we expected in a quarter that management predicts will be a trough of COVID-19 economic weakness. In a historically slow quarter for global auto production, Littelfuse was helped by resilience in its electronics business. As automotive production comes back on line in the second half of the year, the firm expects to see a commensurate return to sequential growth. We maintain our $180 fair value estimate for narrow-moat Littelfuse and would recommend a pullback before investing.