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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) - Get Apple Inc. Report 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.

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