Shares Of GT Advanced Technologies Take A Hit Following UBS Downgrade

Shares of GT Advanced Technologies GTAT are down 8.85 percent in Monday's pre-market session following a downgrade from Buy to Neutral by UBS analyst Stephen Chin.

Chin stated, "We believe GT can still hit the midpoint of its sales guidance of $600-$800M but believe our checks of a slower ramp in 2Q14 makes the high end more challenging."

Chin believes June will be a critical month for the company. He estimates that GT will need to produce at least five million two-inch equivalents of sapphire and that 10 million would make the high end of guidance more achievable.

Based on his checks into GT, Chin has lowered his 2014 sales model from $800 million to $700 million and cut his EPS estimate from $0.17 to $0.12. However, Chin has maintained a $22 price target for shares of the company.