UPDATE: Goldman Sachs Downgrades Rubicon Technology to Sell on Multiple Risk Factors

In a report published Friday, Goldman Sachs analyst Brian Lee downgraded the rating on Rubicon Technology (NASDAQ: RBCN) from Neutral to Sell, but reiterated the $6.00 price target.

In the report, Goldman Sachs noted, “While Rubicon has lagged peers YTD, shares have rallied in the past month (+20% vs. RUT flat) and we downgrade to a Sell rating given 24% downside to our $6, 12-month price target vs. average 6% upside for our coverage. Rubicon is an upstream LED materials supplier which we believe has appreciated on the back of recent momentum in LED lighting adoption and optimism for an LED cyclical recovery. However, with visibility still low, we see risk in 2H13 skewed negatively owing to weakness in 6-inch LED wafers (33% of 2012 sales) where checks suggest (1) continued share loss at its top customer (e.g. LG) and (2) potential for ASP cuts as high as 25%-30%.”

Rubicon Technology closed on Thursday at $7.88.