Kaufman Bros. Comments on Rubicon Tech's (RBCN) Sell Off Over Past Month
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Price: $6.50 +4.50%
Rating Summary:
1 Buy, 4 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 4 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Kaufman Bros. is reiterating its Buy rating and $33 price target on shares of Rubicon Technology (NASDAQ: RBCN) as the stock has declined substantially over the past month.
Shares of RBCN have fallen 25 percent over the last month and 12 percent since June 15 when it reaffirmed its guidance. The firm believes that some investors may have taken the reiteration as reduction in its outlook, but notes that nothing has changed from its original forecasts.
Kaufman states that investors should take advantage of the extreme pullback; largest in the overall LED space and the broader cleantech index, and accumulate as many shares as possible.
The company’s Q2 guidance of $0.53-$0.55 factors in a 40 percent tax rate at which the company was normally only paying 7 percent. As a result, the firm is lowering its Q2 EPS estimate from $0.87 to $0.56 and notes that there is no change to its operational forecasts and that this was widely expected.
An analyst at the firm comments, “While increased competition could be a negative for pricing longer term, we continue to believe that Rubicon has the best quality wafers in the industry and as such is likely to be able to command better pricing than the industry. This, coupled with large diameter expertise, should allow the company to post better-than-consensus results.”
For more ratings news on Rubicon Technology click here and for the rating history of Rubicon Technology click here.
Shares of Rubicon Technology closed at $16.73 yesterday.
Shares of RBCN have fallen 25 percent over the last month and 12 percent since June 15 when it reaffirmed its guidance. The firm believes that some investors may have taken the reiteration as reduction in its outlook, but notes that nothing has changed from its original forecasts.
Kaufman states that investors should take advantage of the extreme pullback; largest in the overall LED space and the broader cleantech index, and accumulate as many shares as possible.
The company’s Q2 guidance of $0.53-$0.55 factors in a 40 percent tax rate at which the company was normally only paying 7 percent. As a result, the firm is lowering its Q2 EPS estimate from $0.87 to $0.56 and notes that there is no change to its operational forecasts and that this was widely expected.
An analyst at the firm comments, “While increased competition could be a negative for pricing longer term, we continue to believe that Rubicon has the best quality wafers in the industry and as such is likely to be able to command better pricing than the industry. This, coupled with large diameter expertise, should allow the company to post better-than-consensus results.”
For more ratings news on Rubicon Technology click here and for the rating history of Rubicon Technology click here.
Shares of Rubicon Technology closed at $16.73 yesterday.
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