This Day On The Street
Continue to site
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

GT Advanced Falls After Analyst Downgrades to Underperform

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.82 -0.18%
FB $105.47 0.06%
GOOG $750.27 0.28%
YHOO $32.95 -0.63%
TSLA $231.11 0.64%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.31 +1.44 0.07%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs