Oppenheimer Keeps Their Buy Rating on Littelfuse

By Austin Angelo

In a report released yesterday, Christopher Glynn from Oppenheimer reiterated a Buy rating on Littelfuse (NASDAQ: LFUS), with a price target of $200. The company’s shares closed yesterday at $174.26.

Glynn commented:

“Littelfuse announced the acquisition of IXYS Corporation, expected 1Q18 close, for equity value of ~$750M (EV of $655M, net of $95M cash acquired). The transaction will be funded 50% by cash and 50% by stock. The deal equates to ~2x EV/sales (~ $325M) and 14.5x EV/EBITDA (14% EBITDA margins vs. current 23% for LFUS), and the combined entity will have pro forma revenues of ~$1.5B. LFUS expects $30M+ of annualized synergies within two years (year two weighted; 8.7x PF purchase price), with benefits split between COGS and operating expenses. IXYS projects immediately accretive to EPS and FCF, incl.”

According to TipRanks.com, Glynn is a top 100 analyst with an average return of 12.7% and a 69.9% success rate. Glynn covers the Industrial Goods sector, focusing on stocks such as Emerson Electric Company, Honeywell International, and Rockwell Automation Inc.

Littelfuse has an analyst consensus of Moderate Buy, with a price target consensus of $194.

The company has a one year high of $188.60 and a one year low of $116.97. Currently, Littelfuse has an average volume of 130.7K.

Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is negative on the stock. Most recently, in May 2017, Dieter Roeder, the Sr. VP & G.M. Automotive Div. of LFUS sold 8,490 shares for a total of $1,384,379.

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Littelfuse, Inc. engages in supplying of circuit protection products for the electronics, automotive and electrical industries. It offers electromechanical and electronic switch and control devices for commercial and specialty vehicles and sensors for automobile safety systems, as well as protection relays and power distribution centers for the safe control and distribution of electricity. It operates through the following segments: Electronics, Automotive, and Electrical. The Electronics segment includes the broadest and deepest portfolio of overvoltage and overcurrent solutions, as well as a leading offering of power switching devices. The Automotive segment maintains a direct sales force to service all the major automotive OEMs and system suppliers domestically. The Electrical segment markets and sells its power fuses and protection relays through the manufacturer’s representatives across North America. The company was founded by Edward V. Sundt in 1927 and is headquartered in Chicago, IL.