UPDATE: Piper Jaffray Reiterates Neutral Rating, Raises PT on GT Advanced Technologies Following Thermal Technology Acquisition

In a report published Monday, Piper Jaffray analyst Jagadish Iyer reiterated a Neutral rating on GT Advanced Technologies

, and slightly raised the price target from $3.00 to $3.70. In the report, Iyer noted, “GTAT acquired CA based Thermal Technology (est. CY13 sales of $15-24m). Thermal technology is a maker of furnace equipment for growing sapphire using the Kyropolous method. GTAT currently has its ASF sapphire furnaces in LED end markets and is targeting mobile applications. This acquisition brings in yet another approach to be an enabler of sapphire production. Thermal Technology's sapphire furnaces carry an ASP and margin profile similar to GTAT's ASF business. We estimate GTAT paid 1x sales for the deal which closed last week. We believe the acquisition will be earnings neutral in CY13 and could contribute ~$0.05 of incremental EPS in 2014 based on the limited financials given. 2013 guidance remains unchanged. We believe this acquisition likely diversifies GTAT's potential customer base, effectively providing some de-risking of the business. We adjust our CY14 estimates and raise our PT to $3.70 ($3 previously).” GT Advanced Technologies closed on Friday at $4.52.