This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

GT Advanced Falls After Analyst Downgrades to Underperform

Stock quotes in this article: GTAT

NEW YORK (TheStreet) -- Shares of sapphire maker GT Advanced  (GTAT) are falling after research firm Raymond James downgraded the stock to Underperform from Market Perform in a note to investors today. The firm cited concerns about the stock's valuation as the main reason for the downgrade.

WHAT'S NEW: Noting that GT Advanced's stock had risen well over 100% this year as of yesterday's close, Raymond James analyst Pavel Molchanov wrote that the sapphire production deal between GT Advanced and Apple (AAPL) is already "amply priced into" GT Advanced's stock. Although details about the deal are hazy and more information should emerge about it when Apple launches its new smartphones on September 9, it's difficult to foresee Apple saying anything that could make investors significantly more optimistic about GT Advanced, Molchanov believes. Moreover, GT Advanced's revenue guidance appears to already bake in significant iPhone penetration and investors already expect GT Advanced's sapphire to be used in Apple's new wearable products and/or certain iPhone models, the analyst explained. As for GT Advanced's solar business, the company has introduced a number of innovative new products, but it's difficult to determine how many customers will adopt them, according to Molchanov.

PRICE ACTION: In mid-morning trading, GT Advanced fell 4.6% to $17.72.

Reporting by Larry Ramer.

The Fly provides comprehensive coverage of stock news and Street research and delivers it in real-time. The Fly breaks market-moving news and explains sudden stock movements in a rapid-fire, short-form story format. Follow @theflynews on Twitter. For a free trial, click here.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,737.28 -67.43 -0.40%
S&P 500 1,934.11 -12.05 -0.62%
NASDAQ 4,389.1620 -32.9230 -0.74%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs