Piper Jaffray Downgrades RBCN, Lowers PT To $25

Piper Jaffray has downgraded Rubicon Technology, Inc. RBCN to Neutral from Overweight and has lowered its price target to $25 from $50 “given increasing concern around sapphire capacity additions through 2011.” “Although we acknowledge RBCN's leading market share in larger diameter sapphire wafers, we believe investors are likely to continue to look past that to oncoming capacity additions from competitors, and new competition likely enabled by SOLR's merchant sapphire growth equipment,” Piper Jaffray writes. “These concerns lead us to lower our target multiple from 25x to 10x, our 2012 EPS of $2.47, giving us a price target of $25.” Rubicon Technology currently trades at $22.23.