Hana Securities: RF Materials' earnings growth to continue, stock undervalued

Hana Securities has reiterated its 'Buy' recommendation for RF Materials, projecting sustained earnings growth for the company. The brokerage firm believes the stock is currently undervalued when benchmarked against its global peers, suggesting a potential for future appreciation.

Despite the positive outlook on earnings, Hana Securities has revised its target price for RF Materials. The new target is set at 75,000 won, a reduction from the previous 150,000 won. This adjustment accounts for a free share split, a corporate action that increases the number of outstanding shares without changing the company's overall market capitalization.

As of the previous day's closing, RF Materials' stock was trading at 23,700 won. The analyst report, authored by Kim Hong-sik, highlighted specific factors influencing the company's performance, including its relationship with Lumentum and its pump-and-filter technology, though details on these aspects were cut short in the provided text.

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RF Materials is expected to continue its earnings growth trend, but its multiples are undervalued compared to global competitors.