Bel Fuse Inc. Operational Pivot with Multi-End-Market Torque: Initiating at Overweight with YE27 PT of $370

研报英文原文证据摘录

Bel Fuse Inc. Operational Pivot with Multi-End-Market Torque: Initiating at Overweight with YE27 PT of $370

Tomohiko Sano AC North America Equity Research

(1-212) 622-1099 10 June 2026 J P M O R G A N

tomohiko.sano@jpmorgan.com

Risks to Rating and Price Target

End Market Concentration and Order Lumpiness: Nearly half of TTM revenue is

exposed to aerospace, defense and space, with another 20-25% exposed to industrial

networking and data centers. Defense ordering is inherently lumpy on a quarterly basis,

particularly for sub-systems where prime contractors are managing production rates. Bel

Fuse’s commercial aerospace remains highly exposed to Boeing’s production schedule.

A single delayed program or change to defense budget/timing of spend could materially

impact quarterly earnings results.

Customer Concentration Remains Despite Customer Diversification: While Bel has

said that none of its customers represent >10% of revenue, it is exposed to a small

subset of defense primes (i.e. Boeing, Lockheed Martin, Raytheon) and a small set of

networking OEMs. This means that the loss of a single design slot or pause in a single

refresh cycle could adversely impact earnings materially.

China Exposure and Evolving Tariff and Trade Regimes: Bel Fuse’s China

manufacturing creates ongoing trade-regime uncertainty. While the U.S. Supreme Court

struck down certain IEEPA-based tariffs, alternative legal authorities could sustain a

tougher US-China stance. Management estimated roughly 25% of 2025 global sales

would have been tariff-exposed if all recently enacted measures were in force; Mexico

imports remain exempt where USMCA applies. We see the key risks as persistent

margin drag, requalification/transfer costs, and customer resistance to price pass-

through.