UPDATE: Piper Jaffray Downgraded GT Advanced Technologies to Neutral on Core Segment Headwinds

Piper Jaffray reduced its rating on GT Advanced Technologies

from Overweight to Neutral and lowered its price target from $7 to $3. Piper Jaffray noted, "We believe that while the company indicated 25% of its $1.2bn in YE12 backlog ($500m in Poly+ $700m in sapphire) remains at risk, we see much more as continued industry overcapacity in polysilicon along with vagaries in the sapphire market as it relates to demand and customer financing in China makes us more cautious. With no incremental orders in either of the two segments at least in 1H13, we see no meaningful catalyst ahead. With free cash flow likely to be constrained based on the '13 guidance, we see the company continuing to burn cash at least in 1H13." GT Advanced Technologies closed at $3.07 on Tuesday.