In a report published Wednesday, J.P. Morgan analyst Paul Coster downgraded the rating on Rubicon Technology RBCN from Overweight to Neutral, but reiterated the $7.00 price target.
In the report, J.P. Morgan noted, “We are downgrading RBCN to Neutral on Valuation. The stock is up 35% YTD versus ~11.3% increase in the S&P 500 index, and has traded through our price target. General Lighting is driving a recovery in demand for LEDs and sapphire substrate, which should drive a recovery in RBCN sales and gross margins; however, we believe this recovery is largely priced in now. Some sapphire production capacity has been withdrawn from the market, but suppliers can ramp production quickly and we see only a slow recovery in margins at this time. Price target $7.00.”
Rubicon Technology closed on Tuesday at $8.27.
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