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UBS Maintains a 'Neutral' on Rubicon Technology (RBCN); Misses 4Q11 But Announces New Contract

February 10, 2012 1:11 PM EST
RBCN Hot Sheet
Rating Summary:
    4 Buy, 7 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 7 | New: 26
UBS maintains a 'Neutral' on Rubicon Technology (NASDAQ: RBCN) price target raised from $10 to $13.

UBS analyst says, "RBCN reported that is 4Q11 sales will be about $19.5M compared to its original guidance of $21.5M. Rubicon did not update its 4Q11 EPS guidance of $0.09 but we now estimate $0.06. We believe the 4Q11 miss was a combination of lower sales of 2-inch, 4-inch and 6-inch sales...While Rubicon did not mention the customer’s name, we believe it is with LG Innotek. This would be the 2nd contract for 6-inch wafers that Rubicon has signed with the same customer. Although it is slightly smaller and for a shorter duration, running for 7 months from Jun-12 thru Dec-12 compared to the first contract at $71M for 14 months, it confirms Rubicon’s leadership in 6-inch sapphire wafers...Our new 2011 EPS estimate is $1.64 (from $1.83)."Rubicon will report 4Q11 results on 2/23.

For an analyst ratings summary and ratings history on Rubicon Technology click here. For more ratings news on Rubicon Technology click here.

Shares of Rubicon Technology closed at $12.58 yesterday, with a 52 week range of $8.23-$29.79.


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