J.P. Morgan Chase & Co. is raising its estimates on Rubicon Technology RBCN. It has an Overweight rating and a $36 price target.
In a note to clients, J.P. Morgan writes, "Our C11 rev/EPS are now $189.6mn/$3.12 vs. $195.1mn/$2.55 previously. We are also launching our C12 estimates of $292.2mn/$2.83. The primary reason for the YoY decline in EPS is the assumption that Rubicon will exhaust all of its NOLs and will have to revert to a 35% corporate tax rate vs. our estimate of an average tax rate of 9.3% in C11. We expect the company's margin performance to remain robust in C12 as it continues to shift production to larger wafer diameters. RBCN trades at 6.8x our new C11 EPS ests. vs. our Alt Energy universe of 14.7x."
Shares of RBCN are up sharply in pre-market trading, up $3.58 to $24.69, a gain of nearly 17%.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsInformation TechnologyJ.P. Morgan Chase & Co.Semiconductor Equipment
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