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Rubicon Technology (NASDAQ: RBCN) Receives Upgraded Coverage from Canaccord Genuity

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Canaccord Genuity has upgraded coverage on Rubicon Technology, which trades on the NASDAQ under the symbol RBCN. Based outside of Chicago, Illinois, Rubicon is a materials company specializing in growing monocrystalline sapphire products mainly for the LED and radio frequency integrated circuit markets.

Additional Information:

Company: Rubicon Technology
Website: http://www.rubicon-es2.com
Stock Symbol: NASDAQ: RBCN
Date Published: Mar 25, 2013
Transcript: Available

Video Transcript:

I’m Megan Edwards for InvestmentPitch.com

Canaccord Genuity has upgraded coverage on Rubicon Technology, which trades on the NASDAQ under the symbol RBCN.

Analyst Jonathan Dorsheimer gives the company a new buy rating with a $10 price target, double the previous target of $5.00.

This is a 68% premium to the $5.95 price at the time the report was issued.

The new target is based on an expectation of slightly higher revenues and a modest uptick in profitability for 2014.

Based outside of Chicago, Illinois, Rubicon is a materials company specializing in growing monocrystalline sapphire products mainly for the LED and radio frequency integrated circuit markets.

The company applies its proprietary crystal growth technology to produce very high-quality sapphire in a form that allows for volume production of various sizes and orientation of substrates and windows.

Sapphire ingot is typically used as raw material for further fabrication.

It is the world leader in larger diameter sapphire products to support next-generation applications.

It supplies 2 inch, 3 inch, 4 inch and 6 inch sapphire cores and wafers as well as sapphire optical products for the aerospace and defense market.

Canaccord stated, “We believe that Rubicon can be among the lowest-cost providers when its factory is properly utilized, positioning the firm well for the eventual rebound.”

Canaccord cautions that Rubicon is subject to several investment risks such as an industry-wide transition to another substrate material or the potential for wafer reuse, which would decrease demand for new substrates.

Canaccord concluded, “We believe shares are washed out and that overall sentiment in the LED space will take the stock higher over the coming year.”

Rubicon currently trades at $6.25, and with 22.5 million shares outstanding, is capitalized at $141 million.

For more information please visit the company’s website www.rubicon-es2.com, or call Dee Johnson, Vice President of Investor Relations at 847-457-3426 or by email at investor@rubicon-es2.com.

For more information about Canaccord Genuity or to obtain a copy of their research report, contact your nearest Canaccord Genuity office. Their branches are listed on their website at www.canaccord.com.

I’m Megan Edwards for InvestmentPitch.com
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