UPDATE: Oppenheimer Initiates Coverage on Littelfuse as Execution Buys Downside Protection

In a report published Friday, Oppenheimer analyst Christopher Glynn initiated coverage on Littelfuse (NASDAQ: LFUS) with a Perform rating and $83.00 price target.

In the report, Oppenheimer noted, “We are initiating coverage of LFUS with a Perform rating and 12- to 18-month price target of $83, representing upside of 7.5%, including 1.1% dividend yield. Our PT is based on LFUS trading at 17.5x our 2014 EPS estimate of $4.75. Noting our '14E EPS vs. $4.94 consensus, we anticipate acquired revenue margins render consolidated OM expansion at lower levels, and that the shares may take time to digest recent multiple expansion. Meaningful end-market diversification and streamlining have resulted in sustained strong operating performance through recent end market volatility, and along with recently emboldened acquisition strategy should provide quality downside protection. A long-standing global leader in circuit protection, LFUS also has expanding platforms in power control and sensing.”

Littelfuse closed on Thursday at $76.45.