GTAT – Stifel analyst report highlights

Posted: May 29, 2014 by mattmargolis24 in Uncategorized
Tags: ,

“There is no exclusivity between GT to Apple with regard to Hyperion Output”

GT’s focus on sapphire foil production and lamination has a path to mobile applications in our view

Current estimates are now $678m 2014, 1,332m in 2015 and 2,069m in 2016. EPS estimates $0.07 in 2014, $0.65 in 2015 and $1.64 in 2016.

The firm maintains a $20 PT on shares of GTAT

Key call outs

Merlin % of revenue : 2% in 2015 and 5% in 2016.

Hyperion % of revenue: 1% in 2015 and 4% in 2016.

Sapphire Materials % of revenue: 55% in 2014, 74% in 2015 and 49% in 2016.

ASF Furnaces % of revenue: 28% in 2014, 10% in 2015 and 8% in 2016.

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Comments
  1. Sam Gidwani says:

    In the last ER, GTAT listed Sapphire equipment backlog at 300m. I’m guessing much of this was orders prior to Q1, ant it is likely deliverable in 2014. Poly backlog at 296m.

    Based on Stifel’s 678m revenue estimate for 2014, and assuming the Q1 backlog is shipped and invoiced during the year, we’re talking about ASF’s being 44% and Poly being 43%. Another 2% of PV is in the book to be shipped as well, putting the backlog alone at 89% of 2014 revenue. These figures do not include increased selling prices for those ASF orders that will be upgraded to the 165kg capacity.

    I think the analysts are way off on estimates for this year, and that GTAT has not given us any information with which to make guesses on materials sales to apple.

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  2. Nancy Allin says:

    Matt, does it concern you that another key insider just sold 76,000 shares? COO sold last Friday. I am concerned that insiders, in key positions, are selling ahead of Apple’s announcement next week. This does not leave me with a good feeling in the pit of my stomach. Why would they be selling when the business is obviously ramping up production?

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  3. Mike says:

    Matt could you comment on “insider” sale today for over 7 million worth. I think people will freak out but it’s not an insider that works at GTAT but a fund who held a certain amount of shares, and still hold a ton… Thanks brotha

    Like

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