B.Riley Downgrades RF Industries Ltd. (RFIL) to Neutral

B.Riley analyst Josh Nichols downgraded RF Industries Ltd. (NASDAQ: RFIL) from Buy to Neutral with a price target of $10.25.

The analyst comments: "We are downgrading RFIL from Buy to Neutral with an unchanged $10.25 PT, reflecting 1.3x FY26E (Oct) EV/sales (15x EV/EBITDA). Shares are +53% (^RUT 0%) since our 1/14 F4Q25 research update (HERE) and now trade above our target. To be clear, our constructive fundamental view is unchanged. RFIL's transformation from traditional component supplier to diversified solutions provider was validated by F4Q25 results (revenue +23% Y/Y, 11.5% EBITDA margin), and we see continued momentum from higher-margin DAC thermal cooling systems and small cell deployments. However, valuation now reflects much of the near-term upside, with the stock pricing in execution, that while achievable or beatable, leaves limited margin for error. We acknowledge our estimates may prove conservative with FY26 sales +5% Y/Y compared to FY25's +24% acceleration, and our 8.8% FY26E EBITDA margin assumption sits well below F4Q25's 11.5% print. If Direct Air Cooling (DAC) and aerospace momentum continue and RFIL sustains $22M+ quarterly revenue, estimates are likely to have meaningful upside."

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Shares of RF Industries Ltd. closed at $11.04 yesterday.

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