Boston, MA 07/10/2014 (wallstreetpr) – GT Advanced Technologies Inc (NASDAQ:GTAT) has forfeited its joy on the stock market since reports started hitting the wire that Apple Inc. (NASDAQ:AAPL) may not use sapphire glass in its upcoming products, namely iPhone 6 that is expected later this year.
Wall Street seems to be convinced of an Apple miss on the side of GTAT in iPhone 6 and analysts have been reacting with bearish notes on the stock without mercy.
The latest weigh in on the stock are analysts from UBS and Canaccord Genuity.
At UBS, the stock of GT Advanced Technologies Inc (NASDAQ:GTAT) was downgraded to Neutral from a Buy. The analysts also reduced their full-year earnings estimate on the stock by five cents such that they now expect EPS at $0.12.
However, analysts at UBS spared the stock by retaining their price objective at $22 apiece, suggesting a premium of about 33 percent from the prevailing price.
At Canaccord Genuity, the stock of GT Advanced Technologies Inc (NASDAQ:GTAT) was reduced to a Hold from a Buy, and the price target chopped to $20.
The downgrading notes have trigged a downfall of the stock such that it has lost some of its recent gains.
Apple Inc factor
It appears as though Apple Inc (AAPL) is inclined towards adopting Gorilla Glass from Corning Incorporated (NYSE:GLW), which means that that will keep GT Advanced Technologies Inc (NASDAQ:GTAT) in the darkness with its Sapphire Glass. That potential revenue headwind is one of the reasons that informed the latest downgrade notes on the stock.
According to analysts at Canaccord Genuity, the initial launch of iPhone 6 is likely not to feature any material amount of sapphire. Investors had hopes that Apple would use sapphire glass in its upcoming products following an announcement to that effect last November.
Sales miss
Even without the issue of Apple, sales at GT Advanced Technologies Inc (NASDAQ:GTAT) have stuttered in recent months. For example, the company only made sales $600,000 in May, suggesting a decline from $800,000 in April.
