Why GT Advanced Technologies Shares Advanced Higher
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of GT Advanced Technologies (NAS: GTAT) advanced higher today by as much as 13% after an analyst upgraded the stock along with offering some bullish comments.
So what: Canaccord Genuity analyst Jonathan Dorsheimer boosted the firm's rating on GT Advanced Technologies to "buy" along with a $9 price target, representing nearly 30% additional upside from even today's high. Dorsheimer cited potential applications for the company's materials in smartphones, which is one of the hottest growth sectors in technology today.
Now what: GT Advanced Technologies currently produces specialty materials for solar and LED companies, and the analyst believes that its sapphire material could potentially be used as for a device's casing. Even if the company were to share design wins it would still be a boon for its business as a new revenue stream. Smartphones and tablets are the biggest growth stories in computing, and any potential exposure to those sectors are certainly cause for optimism.
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The article Why GT Advanced Technologies Shares Advanced Higher originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.