BrokerBank Securities: GTAT Future Isn’t Quite Crystal Clear

The markets GT Advanced Technology (GTAT) are involved in include LEDs, smart phones, and solar panels are all multi-billion dollar opportunities with accelerating growth. Each of these markets is driving demand for specialized crystals such as polysilicon, photovoltaic, and sapphire crystals.

Sapphire crystals are the second hardest substance known to man, and are used in dental, medical device, specialty optical applications, and watch crystals.

In the analysis report by Chartered Financial Analyst Charles Reed, he still gave GTAT a buy grade contributing most of the company’s growth will come from the PV industry in the remaining of the year. He categorized investments in the sapphire manufacturer company as “high risk, high reward.” The company has reported it had a US $300 million backlog in its sapphire business. (Please click here for full report.)

GTAT stocks have been impacted by its Mesa Arizona sapphire plant production, having plummeted to the recent after being downgraded from Buy to Neutral on July 7, 2014, and being removed from the U.S. Key Call List by UBS. The downgrade happened after monthly checks at the Mesa Arizona sapphire plant indicated the company had shipped less sapphire then expected in May. Canaccord Genuity also downgraded the company from Buy to Hold on the same date, since they were uncertain as to how much of the company’s product Apple will use, and how much it will add to the company’s earning potential.

GTAT Arizona Plant Low Yields Suggests Limited Sapphire Cover Usage in iPhone 6

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