Piper Jaffray Downgrades GT Advanced Tech (GTAT) to Neutral on Smaller Than Expected Apple Sapphire News

September 10, 2014 6:53 AM EDT
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    Up: 7 | Down: 10 | New: 37
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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."

For an analyst ratings summary and ratings history on GT Advanced Tech click here. For more ratings news on GT Advanced Tech click here.

Shares of GT Advanced Tech closed at $14.94 yesterday.

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