UBS joins Canaccord in downgrading GT; Rubicon also hit

"We believe GT can still hit the midpoint of its sales guidance of $600-$800M but believe our checks of a slower ramp in 2Q14 makes the high end more challenging," writes UBS' Stephen Chin while downgrading GT Advanced (GTAT -13%) to Neutral.

Chin is worried about the pace at which Apple-related sapphire output is growing, and has respectively cut his 2014 revenue and EPS forecasts by $100M and $0.05 to $700M and $0.12. Consensus is at $696.5M (+133% Y/Y) and $0.08.

Canaccord's Jonathan Dosheimer, who this morning cut GT to Hold, expresses skepticism the iPhone 6 will use sapphire cover glass in large volumes, and considers 2016 EPS upside unlikely unless sapphire cover glass is used across Apple's iPhone/iWatch lineups.

Dorsheimer's remarks follows a June report claiming only the 5.5" iPhone 6 will feature sapphire cover glass - the 4.7" model will use Gorilla Glass - and that the 5.5" model will be in short supply through year's end due to sapphire yield issues.

Sapphire wafer vendor Rubicon (RBCN -5.9%) is following GT lower on a weak day for tech. GT is still up 95% YTD.

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Comments (13)
  • GTAT ride is from over
    , contributor
    Comment (1) | Send Message
    Well the market's response was disproportionate for a downgrade from buy to hold/neutral. What would it leave for a downgrade to sell. I'm in a holding position since a month but a sell seems to be too early, the target price would hit the 20s at the first news, again the market might respond disproportionally.
    7 Jul 2014, 02:11 PM Reply Like
  • kyllco
    , contributor
    Comments (38) | Send Message
    Another ridiculous analysts findings. Confusion 101. Raise the price target and downgrade or upgrade and lower the price target.
    Bought more at 17.00. Long $GTAT and $MU.
    7 Jul 2014, 03:01 PM Reply Like
  • laguna_b
    , contributor
    Comments (313) | Send Message
    I think you guys are buying way too early....I could see more downside....
    7 Jul 2014, 03:07 PM Reply Like
  • Endorphinist.
    , contributor
    Comments (38) | Send Message
    Bought at 16.97. Will buy more at 14.34.
    7 Jul 2014, 03:30 PM Reply Like
  • bjnflicks
    , contributor
    Comments (4335) | Send Message
    Notice Cannacord just upgraded this stock six weeks ago. Then sold or shorted last week and reversed opinion, based on no new information at all, at least nothing the analyst could possibly verify.


    Who is Cannacord anyway? Some small five man firm involved in stock manipulation? Whoever they are, they were able to make a lot of money on their shorts today. I just hope that tomorrow GTAT speaks out and calls these analysts what they really are, no-nothing white collar crooks.


    And UBS. I'm sure this was coordinated with them. Their excuse was that May orders were down. Duh. Guess why? Because APple has reserved the entire output of this company for a huge rollout beginning in July and they were busy tripling the size of the plant. How could they fill big orders in May> They are prepping for something much bigger. And the analyst knows this, he is just BS'ing.


    I hope some Icahn type steps in tomorrow and buys 10% of the float. See how these crooked midgets at Cannacord like that.


    On the plus side, I was able to double my position cheaply today, so hopefully I will win from this idiocy in the longer term. Long GTAT at least until we find out some facts about sapphire on the new iWatches and iPhones. And if Apple has mysteriously written off 500 million and changed their minds at the last minute, I would be shocked.
    7 Jul 2014, 05:31 PM Reply Like
  • bjnflicks
    , contributor
    Comments (4335) | Send Message
    Canaccord found guilty of fraud for stock manipulation.


    And UBS was one of the prime movers in bringing down down our economy in 2008 and own what's left of Enron, which whom they had a cozy relationship through former Senator Gramm of Texas, the one who was most responsible for deregulating sub-prime mortgages and all those crooked instruments.


    Looks like GTAT has been hit by a couple of fraud artists.
    7 Jul 2014, 05:35 PM Reply Like
  • ar42
    , contributor
    Comments (175) | Send Message
    7 Jul 2014, 11:41 PM Reply Like
  • Islandboyz
    , contributor
    Comments (10) | Send Message
    "Dorsheimer's remarks follows a June report by" Taiwan's Economic Daily News....
    That's nice, I could have told you that. But, I can also find a whole bunch of more pertinent articles which among other things say $GTAT has capacity to grow enough sapphire to make 200M screens a year PLUS 20M at their new factory in Salem, and this new partnership with $AAPL makes them the world's largest producer of sapphire.
    Either way I don't see any reason a downgrade to HOLD is a reason for a 15% sell off.
    8 Jul 2014, 04:56 AM Reply Like
  • kyllco
    , contributor
    Comments (38) | Send Message
    Wouldn't it be nice if stocks didn't move unless the market was open?
    8 Jul 2014, 06:47 AM Reply Like
  • wbricky
    , contributor
    Comments (41) | Send Message
    time to buy more
    8 Jul 2014, 07:20 AM Reply Like
  • Yesterdays_news
    , contributor
    Comments (2084) | Send Message
    So let me get this correct.


    There will be a HUGE demand for iPhone sapphire screens and a possible shortage? And yet the company that is the prime producer and is adding more cutting edge sapphire furnaces daily is getting downgraded?


    I think I will buy more GTAT.


    These analyst clowns must have all their eggs with Google Android and Samsung phones. They sound scared of Apples new screens and iPhone sales.
    14 Jul 2014, 02:18 PM Reply Like
  • wbricky
    , contributor
    Comments (41) | Send Message
    No - they are beating it down so they can buy more
    19 Jul 2014, 08:39 PM Reply Like
  • phersan
    , contributor
    Comments (101) | Send Message
    Have there been any actions taken against Canaccord and UBS on this matter? Some people, including myself, have concerns about market manipulation.
    19 Aug 2014, 11:22 AM Reply Like
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