Why GT Advanced Technologies (GTAT) Received an Upgrade

NEW YORK ( TheStreet) -- GT Advanced Technologies ( GTAT) has been upgraded to "outperform" from "neutral" with a price target of $24 from $18, said Credit Suisse on Monday.

The firm said the electronic parts maker, which specializes in materials polysilicon and sapphire, was upgraded on the upcoming commercialization of products in the pipeline, improving prices for key manufacturing materials, and continued progress regarding its recent supply agreement with Apple.

"The company is shifting its business model from equipment sales to a large mix of less volatile and less cyclical sapphire material sales," analysts said in a note. "We believe this transition will be rewarded in the market with multiple expansion."

Credit Suisse forecasts revenue of $717.7 million, $1.56 billion, and $2.12 billion over 2014, 2015 and 2016, respectively. Earnings per share are anticipated at 17 cents, $1.38, and $2.12 over the three years to 2016.

Despite the upgrade, shares have fallen 6.4% to $16.39 by late morning.

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