Rubicon Technology Inc (NASDAQ:RBCN) Coverage Initiated by Jefferies

Rubicon Technology Inc (NASDAQ:RBCN), a company specializing in sapphire crystal growth technology and large-diameter sapphire based on improved Kyropoulos technology called ES2, stock fell 0.33% (As on September 20, 11:13:07 AM UTC-4, Source: Google Finance) after Jefferies analyst Hamzah Mazari initiated coverage on the company, which is a waste and recycling marketplace broker, with a Buy rating and a price target of $10.00. According to the analysts, their rating is based on an industry that is ripe for digitization providing room for ample growth along with a strong M&A pipeline supported by long-term contracts and adjusted gross margin accretion over time from mix shift.

Meanwhile, the company has signed a technology partnership with  Samsara, the pioneer of the Connected Operations Cloud, to unlock new value for shared municipal customers. Together, Rubicon and Samsara’s complementary technology suites will help enable heavy-duty municipal fleet operations to optimize routes and citizen services, which will improve efficiency, empower drivers, lock in community safety gains, and save tax-payer dollars.

On the other hand, in the second quarter, the revenue totaled $165 million, an increase of 20% compared to $138 million in the second quarter of 2021. This strong revenue growth reflected continued expansion within the Company’s existing customer base as well as the addition of new customers. Adjusted Gross Profit in the second quarter was $13 million, 19% higher compared to the prior year quarter. This growth in profit was driven by increased service levels with both new and existing customers. Despite cost inflation pressures across the category, waste and recycling continues to outperform the broader market even with current market challenges.

Additionally, the company has completed business combination on August 16, raising $196.8 million in gross proceeds and commenced trading on the NYSE under the new ticker “RBT”. The company has entered strategic data and technology partnership with Palantir Technologies, a software company that empowers organizations to integrate their data, decisions, and operations. Expanded its RUBICONSmartCity customer base with three-year contracts with the cities of Houston, Texas and Scranton, Pennsylvania, and announced multi-year extension agreement with Tuesday Morning Corporation. The company has announced multi-year agreement with new customer SRS Distribution, Inc. the company has expanded suite of RUBICONSmartCity solutions with launch of new product to optimize municipal snow removal. The company has also featured in a documentary series produced by Amazon about the company’s transformative work with the City of Santa Fe, New Mexico

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