Littelfuse initiated with a Hold at Jefferies

Jefferies initiated coverage of Littelfuse with a Hold rating and $260 price target. The analyst expects connectivity solutions to benefit from higher content and expanding addressable markets through electrification. Exposure to electric vehicles and artificial intelligence data centers provide opportunities to double content over time, the analyst tells investors in a research note. However, near-term results will be pressured by industrial channel destocking and a weaker macro environment, says the firm. TE Connectivity (TEL) is its sole Buy rated stock on the company’s China auto exposure, margin expansion, capital deployment, and attractive valuation.