Piper Jaffray Downgrades GT Advanced Tech (GTAT) to Neutral on Smaller Than Expected Apple Sapphire News
- Wall St retreats as investors brace for inflation data
- Stocks slip as traders hold fire ahead of US inflation data
- Oil gains on potential OPEC+ cuts, curbed by jump in U.S. crude stocks
- US market now accounts for 60% of total world investable equity market value - UBS
- Dollar bounces before inflation data
Piper Jaffray downgraded GT Advanced Tech (NASDAQ: GTAT) from Overweight to Neutral with a price target of $16.00 (from $23.00) after it was revealed that sapphire will be in the Apple Watch but not the iPhone 6. Analyst Mike Ritzenthaler notes their estimates assumed 16mm iPhone 6 units would have sapphire cover glass.
"As we adjust our model, we struggle to hit management’s FY14 revenue guidance of $600-$700 million (issued on 8/5), and uncertainty about how to reconcile our model with the outlook drives our move to the sidelines," Ritzenthaler said. "We see the final $139 million prepayment from Apple, which management expects before the end of October, as an important next catalyst to reinvigorate shares. However, it is still unclear when, and to what extent, management will be able to give color around sales to Apple and our concern is that visibility will be opaque until February when GTAT reports 4Q14 results."
Shares of GT Advanced Tech closed at $14.94 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Lake Street Capital Markets Downgrades Brightcove (BCOV) to Hold on disappointing revenue view
- Myriad Genetics (MYGN) PT Raised to $28 at Raymond James
- Barclays Downgrades American Electric Power (AEP) to Equalweight, 'Valuation Is Extended'
Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades
Related EntitiesPiper Jaffray
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!