NEW YORK (TheStreet) -- Shares of GT Advanced Technologies (GTAT), which makes sapphire products and solar energy equipment, are sinking after research firms UBS and Canaccord downgraded the stock in notes to investors earlier today.
WHAT'S NEW: After conducting checks, UBS analyst Stephen Chin reported that GT Advanced had shipped much less sapphire from its Arizona plant in May than he had expected. Moreover, the increase in shipments from the plant slowed significantly compared with April, the analyst added. The lower than expected shipments in the second quarter of the year will make it more difficult for the company to meet the high end of its 2014 sales guidance of $600M-$800M, Chin stated. To meet its sales guidance, the sapphire product maker will need to sharply increase its sales to Apple (AAPL) in Q4, the analyst indicated. He reduced his 2014 revenue estimate for GT Advanced to $700M from $800M and cut his EPS estimate for the sapphire maker to 12c from 17c. The firm downgraded the stock to Neutral from Buy, however, Chin kept his price target on the stock at $22.
WHAT'S NOTABLE: Also downgrading GT Advanced today was research firm Canaccord. The firm cut its rating on the stock to Hold from Buy, citing the stock's valuation. It believes that much of the company's positive catalysts are priced into the shares. Canaccord set a $20 price target on the stock.
PRICE ACTION: In early trading, GT Advanced tumbled $2.30, or 11.75%, to $17.25.