Canaccord Genuity Morning Coffee on Corning (GLW): Strong Like Gorilla Glass
GLW Hot Sheet
Rating Summary:6 Buy, 8 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Canaccord Genuity Morning Coffee on Corning (NYSE: GLW): Strong like Gorilla Glass.
Shares of Corning are down roughly 40% over the past 12 months; however, a Barron’s article published over the weekend suggests that patient investors may be rewarded in the coming years. The company has five major divisions with its display technologies segment contributing roughly 90% to the bottom line. This unit has struggled of late due to a slowdown in the display glass market and management expects further pricing and margin pressure in early 2012 before prices stabilize. Competition has increased and inventory is tightening as demand for televisions and monitors has fallen over the past few years. While the TV market has slowed, Corning can still grow through the booming smartphone and tablet markets. One analyst believes that new offerings from Apple (Nasdaq: AAPL) and other smartphone/tablet makers can help the company build momentum. Additionally, management may look to pay shareholders to ease short term concerns through share buybacks or an increase to its dividend. Capital spending is expected to be cut dramatically, dropping $600 million to a range of $1.2-1.3 billion. Another analyst who is bullish on Corning notes that with shares trading below book value, any buybacks will be “automatically accretive to earnings.”
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
Shares of Corning are down roughly 40% over the past 12 months; however, a Barron’s article published over the weekend suggests that patient investors may be rewarded in the coming years. The company has five major divisions with its display technologies segment contributing roughly 90% to the bottom line. This unit has struggled of late due to a slowdown in the display glass market and management expects further pricing and margin pressure in early 2012 before prices stabilize. Competition has increased and inventory is tightening as demand for televisions and monitors has fallen over the past few years. While the TV market has slowed, Corning can still grow through the booming smartphone and tablet markets. One analyst believes that new offerings from Apple (Nasdaq: AAPL) and other smartphone/tablet makers can help the company build momentum. Additionally, management may look to pay shareholders to ease short term concerns through share buybacks or an increase to its dividend. Capital spending is expected to be cut dramatically, dropping $600 million to a range of $1.2-1.3 billion. Another analyst who is bullish on Corning notes that with shares trading below book value, any buybacks will be “automatically accretive to earnings.”
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
You May Also Be Interested In
- UPDATE: Ralph Lauren Corp (RL) Reports Solid Q4 Results; Guides FY13 Sales
- UPDATE: Lowe's (LOW) Beats Q1 Views Amid Lagging Seasonal Demand; Issues Light FY12 Earnings Outlook
- UPDATE: GE Capital to Pay GE (GE) $475M Qtr. Dividend; Plans $4.5B Special Dividend
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barron's, Genuity Capital Markets, Dividend, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
