Vancouver, British Columbia, March 26, 2013 - Canaccord Genuity has upgraded coverage on Rubicon Technology (NASDAQ:RBCN). Analyst Jonathan Dorsheimer gives the company a new buy rating with a $10 price target, double the previous target of $5.00, and 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.
InvestmentPitch.com has produced a "video news alert" which provides a brief overview of Rubicon Technology based on the research report. If this link is not enabled, please visit www.InvestmentPitch.com and enter "Rubicon" in the search box.
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 (RFIC) 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. The company is the world leader in larger diameter sapphire products to support next-generation applications, supplying 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 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.
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Barry Morgan, CFO