Please ensure Javascript is enabled for purposes of website accessibility

Why Littelfuse Shares Jumped 11% Today

By Anders Bylund - Updated May 18, 2020 at 3:49PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The maker of power control components saw a bullish analyst report.

What happened

Shares of Littelfuse (LFUS 1.65%) closed Monday's trading 11.3% higher. The maker of automotive sensors and electric circuit protection components was the subject of a bullish analyst report today.

So what

Analyst firm Baird raised its price target on Littelfuse from $152 to $155 per share, maintaining an outperform rating on the stock. Baird analyst David Leiker argued that the company entered the second quarter at "trough levels" for product demand, revenue, and profit margins. As such, all of these metrics should bounce back in the coming quarters.

A tiny businessman stands on the palm of a much larger businessman's hand, whispering secrets into his ear.

Image source: Getty Images.

Now what

Economic trends will shape Littelfuse's stock chart in the second half, but the balance sheet looks strong enough to carry this company through a temporary downturn, according to Leiker.

The company ended the first quarter with $621 million of cash equivalents and $774 million of long-term debt papers, which does add up to a solid financial position. Littelfuse is a well-managed company with many levers to pull in order to make it through the COVID-19 crisis unharmed. It's no surprise to see the stock rise on an optimistic analyst report, especially since Littelfuse still trades 21% below its 52-week highs.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends Littelfuse. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Littelfuse, Inc. Stock Quote
Littelfuse, Inc.
LFUS
$252.91 (1.65%) $4.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/13/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.