Shares of Anaheim-based circuit board maker Multi-Fineline Electronix Inc. closed down about 2% after an analyst cut his rating on the stock following a big run-up.
Multi-Fineline, a maker of flexible printed circuit boards for mobile phones that goes by M-Flex, has seen its shares rise 70% so far this year on a recent market value of $485 million.
The rise prompted RBC Capital Markets, the investment bank arm of Royal Bank of Canada, to cut its rating on M-Flex to “sector perform” from “outperform.”
RBC Capital said its price target for the stock now is $21. Shares of M-Flex were trading at about $20 on Tuesday.
M-Flex makes flexible circuit boards that are in demand by makers of the latest generation of mobile phones.
Smartphones, which offer e-mail, Web access and other advanced features, require about five flexible printed circuit boards, according to a report on Taiwanese electronics news site DigiTimes.
Apple Inc.’s latest iPhone uses more than 10.
M-Flex supplies circuit boards for the iPhone, DigiTimes said.
Singaporean electronics maker WBL Corp. owns about 60% of M-Flex.
