RBCN To Benefit From Sharp Rise In Sapphire Prices

Analysts at Oppenheimer & Co reiterate their "outperform" rating on Rubicon Technology Inc RBCN, while raising their estimates for the company. The target price for RBCN has been raised from $30 to $34. Oppenheimer & Co is expecting sapphire prices to increase sharply in Q3. According to the analysts, “Sapphire shortage is becoming more acute.. Moreover, given the relatively slow pace of sapphire capacity expansion, it is increasingly likely that the shortage will persist until at least mid-2011… The strong demand for sapphire is the result of a sharp shift in consumer taste towards thin, LED-backlit TVs and monitors. For set- and panel-makers, the ability to respond to this shift now marks the line between success and failure.” Oppenheimer & Co has raised its EPS estimates for 2010 and 2011 from $0.67 to $1.00 and from $1.33 to $1.73, respectively. More Analyst Ratings here