NEW YORK (TheStreet) -- Shares of Littelfuse (LFUS) are up 1.18% to $93.70 after Oppenheimer Holdings (OPY) upgraded the electronic manufacturing company to "outperform" from "market perform" due to organic growth trends and cost saving initiatives.
The firm currently has a $107 target price on the company, suggesting a potential upside of 15.54% from the current price.
"We believe LFUS has established an entrenched operating excellence culture to support a long-term compounding acquire and integrate strategy," said analyst Scott Schneeberger.
TheStreet Ratings team rates LITTELFUSE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LITTELFUSE INC (LFUS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 17.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $31.00 million or 35.03% when compared to the same quarter last year. In addition, LITTELFUSE INC has also vastly surpassed the industry average cash flow growth rate of -20.62%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- LITTELFUSE INC's earnings per share declined by 8.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LITTELFUSE INC increased its bottom line by earning $3.93 versus $3.40 in the prior year. This year, the market expects an improvement in earnings ($4.96 versus $3.93).
- Despite currently having a low debt-to-equity ratio of 0.41, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that LFUS's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.76 is high and demonstrates strong liquidity.
- You can view the full analysis from the report here: LFUS Ratings Report