DeZwarteRidder schreef op 6 augustus 2014 09:41:
[...]
Target to $16 Despite Good Positioning
By Tiernan Ray
Following on the discussions earlier about GT Advanced Technologies (GTAT), which closed up 95 cents, or almost 7%, at $15.08, in the wake of its Q2 earnings report yesterday, Canaccord Genuity’s Jonathan Dorsheimer updated his thoughts on the company, reiterating a Hold rating, and cutting his $20 price target to $16.
Writes Dorsheimer, there is some question whether the company can make the EPS forecast for 12 cents to 18 cents per share that it has offered for this year, up from a prior view of 8 cents to 18 cents, given costs to ramp up operation of furnaces making sapphire materials for use by Apple (AAPL), presumably in a forthcoming iPhone model:
“We struggle to achieve GTAT’s 2014 guidance,” writes Dorsheimer.
“In fact, even with a generous ramp in Apple materials, strong ASF
equipment sales, and excluding several recurring ‘one time’ items we cannot achieve the $0.12-$0.18 guide.”
Regarding margins, Dorsheimer notes that “within the sapphire segment, the company’s materials operation in Arizona used to supply Apple had negative gross margins.”
“Also, non-GAAP gross margin adjustments now include the reduction of sapphire production ramp up costs.”