GT Advanced Technologies (GTAT) Nosedives Following Canaccord Downgrade

Shares of GT Advanced Technologies (GTAT), whose glass is used in Apple (AAPL)’s iPhone 5S, plunged more than 15% Monday morning after Canaccord’s Jonathan Dorsheimer downgraded the stock to ‘Hold’ from ‘Buy’, saying that much of the company’s positive catalysts have already been factored into the stock’s price.

[via Streetinsider]”We believe GTAT is positioned to benefit from a move to sapphire cover glass in the handset market, as well as a ramp in solar and some new technologies. However, with much of the news priced in the shares, we feel the near-term opportunity is fairly valued at current levels…We view GT as a pioneer of sapphire cover glass. However, we see a balanced risk reward at current levels given the limited disclosure around Apple’s launch of the iPhone 6 and iWatch, combined with recent assumptions of cover glass adoption.”

Dorsheimer also said he doesn’t believe Apple’s initial launch of the iPhone 6 will have a sapphire display “in any material volumes, in either 4.7” or a 5.5” form factor.”

The analyst set a $20 PT on the stock.

Price action: In early trading, GT tumbled $2.99, or 15.29%, to $16.56. GT stock closed Thursday at $19.95, down 51 cents, on a volume of 6.2 million shares on the Nasdaq. GT’s today trading volume of 24.8 million has exceeded its three-month daily average of 9.7 million.

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