Laureate Trust

Apple (AAPL) iPhone 6 Glass Supplier GT Advanced (GTAT) Rated Strong Buy Target US$22, According to Laureate Trust

According to Laureate BVI, GT Advanced is rated a long-term buy with a target price of US$22.00 because it’s partnership through Apple (AAPL) has positioned it for massive growth.


Beverly Hills, CA -- (ReleaseWire) -- 05/15/2014 -- Laureate BVI issued a strong buy rating on GT Advanced Technologies (GTAT) due to its partnership with Apple (AAPL) for its Sapphire glass applications. Laureate sees the current dip in price as opportunity to buy a company that could double in price.

GT Advanced Technologies is currently trading at US$13.50. GT Advanced has a 52 week low of US$3.44 and a 52 week high of US$19.44. The stock’s 50-day moving average is US$16.20 and its 200-day moving average is $12.36. The company’s market cap is US$1.891 billion.

“We expect sapphire glass by GT Advanced, which is currently used by Apple (AAPL) to protect the camera lenses and the finger print sensor on the iPhone 5s, will also be used on the iPhone 6 and the iWatch. The downturn in earnings is transitional and the fact that Apple (AAPL) is its customer we could see 100% upside in this company stock,” according to Laureate BVI CEO Peter Tasca.

Tasca further states, "GT Advanced (GTAT) has already received the third payment from Apple (AAPL) which is part of a multi-year deal for sapphire glass worth US$578 million.”

Laureate’s product research notes, GT Advanced at the end of the quarter had an equipment backlog worth US$609 million, including US$300 million worth of orders for Sapphire glass. For the full year, the company will generate revenue of US$600-800 million, of which 80% will be from Sapphire glass.

Tom Gutierrez, President and CEO of GT Advanced said, “We are pleased to have Apple as a sapphire customer and to be in a position to leverage our proprietary know-how to enable the supply of this versatile material.” He further stated, that his company expects to return to profitability in the second half of 2014, given the size of Apple’s contract.

Apple Chief Tim Cook also confirmed that the new GT Advanced facility in Mesa, AZ would be used to build sapphire crystal glass.

Tasca states, “Any weakness in GT Advanced stock should be looked at as a buying opportunity, Apple (APPL) sold around 150 million iPhones in 2013, and has sold over 90 million iPhones so far this year. The next generation of iPhones have already been confirmed to be fitted with Sapphire glass, which is known for its superior hardness compared to Cornings Gorilla Glass.”

According to Gartner Group, worldwide sales of smartphone units were 968 million, and tablets totaled 195 million units in 2013.

Laureate reports, with this new partnership GT Advanced will easily double Sapphire revenue. We see strong sales for GTAT for the next 3-5 years and we set a long-term target price of US$22.00 for this stock.

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