Bel Fuse Inc (BELFB.O): Specialized Niche Connector Company with Attractive End Market Exposure; Initiate with a Buy

研报英文原文证据摘录

Bel Fuse Inc (BELFB.O): Specialized Niche Connector Company with Attractive End Market Exposure; Initiate with a Buy

Essentials |

13 Jul 2026 05:00:23 ET │ 40 pages

Bel Fuse Inc (BELFB.O)

Specialized Niche Connector Company with Attractive End Market

Exposure; Initiate with a Buy

CITI'S TAKE

We initiate coverage of Bel Fuse (class B) with a Buy rating and $325 target Buy

price, representing ~19% ETR. BELF has meaningfully transformed itself

from a decentralized, product-oriented organization into a higher-margin Price (10 Jul 26 16:00) US$272.58

power, connectivity, and defense electronics supplier with increasing Target price US$325.00

exposure to aerospace/defense and AI-related infrastructure with improved Expected share price return 19.2%profitability and a clearer commercial strategy. BELF could see both further

earnings and valuation growth/expansion if mgmt continues to execute, Expected dividend yield 0.1%

margins maintain, and defense/networking growth persists. Shares trade at Expected total return 19.3%

21x EV/EBITDA NTM (27x PE NTM, 4.6x EV/S) and have seen significant Market Cap US$3,300Mmultiple expansion from mid-last year on profitability focus plus sharpened

end markets focus and accretive M&A. End market drivers and profitability

focus should sustain, with potential for M&A bolstering earnings

momentum.

Price Performance

Attractive End Market Exposure – With ~65% of sales to defense, aerospace, space (RIC: BELFB.O, BB: BELFB US)

and data solutions end markets, BELF remains poised for above market growth to

sustain into 2026 and 2027 with demand drivers including defense

modernization/replenishment, commercial aerospace production recovery, space

exploration and AI led data center/networking demand.