UPDATE: JPMorgan Upgrades Rubicon Technology (RBCN) to Overweight on Sapphire Opp
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Price: $1.30 --0%
Rating Summary:
1 Buy, 4 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
1 Buy, 4 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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(Updated - April 1, 2014 11:08 AM EDT)
JPMorgan upgraded Rubicon Technology (NASDAQ: RBCN) from Neutral to Overweight with a price target of $14.00 (from $12). Analyst Paul Coster said Sapphire was approaching a "melting point."
"Ramping demand for LEDs and sapphire covers used in smartphones and wearable CE devices should drive strong sales of sapphire cores, wafers, and specialized optical components for the industrial sapphire market and for Rubicon, leading to a recovery in gross margins and a return to net profit in late 2014, followed by a strong earnings recovery in 2015. We are raising estimates slightly, close to Street high, in anticipation of this recovery, and we are upgrading RBCN to Overweight; our Dec 2014 price target goes to $14.00, representing a potential 22% return," said analyst Coster.
"RBCN trades at 16.1x our revised 2015 forecast of $0.70 PF EPS, a ~22% discount to its peer-group average and a slight discount to the stock's three-year mean forward P/E multiple. The stock also trades at a price/book multiple of 1.5x, slightly above the three-year average of 1.3x but well below prior peak multiples of 6-7x. We think this is an attractive P/E multiple to pay for this stock ahead of what we believe will be a significant surge in earnings through 2015; we also expect consensus EPS to be revised up over the course of the next four to six quarters as the recovery in sapphire sales and margins takes shape," he added.
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 $11.29 yesterday.
JPMorgan upgraded Rubicon Technology (NASDAQ: RBCN) from Neutral to Overweight with a price target of $14.00 (from $12). Analyst Paul Coster said Sapphire was approaching a "melting point."
"Ramping demand for LEDs and sapphire covers used in smartphones and wearable CE devices should drive strong sales of sapphire cores, wafers, and specialized optical components for the industrial sapphire market and for Rubicon, leading to a recovery in gross margins and a return to net profit in late 2014, followed by a strong earnings recovery in 2015. We are raising estimates slightly, close to Street high, in anticipation of this recovery, and we are upgrading RBCN to Overweight; our Dec 2014 price target goes to $14.00, representing a potential 22% return," said analyst Coster.
"RBCN trades at 16.1x our revised 2015 forecast of $0.70 PF EPS, a ~22% discount to its peer-group average and a slight discount to the stock's three-year mean forward P/E multiple. The stock also trades at a price/book multiple of 1.5x, slightly above the three-year average of 1.3x but well below prior peak multiples of 6-7x. We think this is an attractive P/E multiple to pay for this stock ahead of what we believe will be a significant surge in earnings through 2015; we also expect consensus EPS to be revised up over the course of the next four to six quarters as the recovery in sapphire sales and margins takes shape," he added.
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 $11.29 yesterday.
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