GT Advanced Technologies Inc (GTAT) Shares Tanked and Degraded by Multiple Analysts

Unlike for the major U.S. mobile carriers, September 9 event concluding the launch of much awaited iPhone 6 from Apple Inc (NASDAQ:AAPL) didn’t bring any good news for GT Advanced Technologies Inc (NASDAQ:GTAT). Apple announced that it will use an ionized glass screen instead of the sapphire glass screen and the announcement lead to a massive selling of GT Advanced Technologies Inc (NASDAQ:GTAT)’s shares.

The shares of GT Advanced Technologies Inc (NASDAQ:GTAT) have fallen in access of 25% since the launch of Apple iPhone 6 on September 9. Earlier, Apple Inc (NASDAQ:AAPL) was planning to use Sapphire glass screen and later decided to go with the ionized glass screen leading to the massive fall in share prices. Apple is likely to use Sapphire glass screen in its Watch; however, the success of the same is still in question.

GT Advanced Technologies Inc (GTAT)

In addition to it, several analysts and research firms have degraded the rating of GT Advanced Technologies Inc (NASDAQ:GTAT). Dougherty & Co is the latest to change GT Advanced Technologies Inc (NASDAQ:GTAT)’s rating to Sell on Wednesday. Another firm, Piper Jaffray, changed GTAT’s rating to Neutral from overweight with a $16.00 target price. Goldman Sachs Group Inc (NYSE:GS) analysts have change GT Adanced Technologies to Neutral from an earlier Buy rating with a $14.00 target price.

Earlier, GT Advanced Technologies reported revenue of $58.0 million for the second quarter 2014 with $44.1 million from sapphire shipments. Non-GAAP gross profit was 14.6 million for the second quarter and the company reported non-GAAP loss per share of $0.16. GT Advanced Technologies had $333 million in cash and cash equivalents as compared to $509 million at the end of the first quarter 2014.

This article has been written by Prakash Pandey.

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