Raising Murata Manufacturing’s FVE to JPY 20,000; RF Components Will...

We are raising our fair value estimate for Murata Manufacturing to JPY 20,000 from JPY 16,800, as we are more confident that 1) growth of multilayer ceramic capacitors, or MLCCs, will exceed our previous view, driven by the increasing power consumption of handsets and digitalization of auto; 2) demand for SAW filters in China will recover after the inventory adjustment; and 3) Murata will reignite its RF module business by leveraging its advantage on product lineups. We view Murata’s economic ...