Corning (GLW): TVs Driving Upside To Glass Demand - Susquehana

Susquehanna analyst, Mehdi Hosseini, reiterated his Positive rating on shares of Corning (NYSE: GLW) and raised his price target to $27.00 from $25.00 following recent checks that suggest the migration to larger screen size thinner TVs are tracking better than prior expectations, and thus driving upside to glass unit demand expectations. This, combined with benign ASP decline, bodes well for Corning's Glass business unit which accounts for the majority of the company's operating margin.

The analyst also expects modest upside to Optical Communication because he believes that data centers are flushing their 2016 cap-ex budgets in 2H16 given the incremental improvement in the overall demand environment.

These to issues lead to an increase in CY16/CY17 EPS estimates from $1.46/$1.62 to $1.48/$1.72, which is ahead of the current street consensus estimates of $1.42/$1.61,

For an analyst ratings summary and ratings history on Corning click here. For more ratings news on Corning click here.

Shares of Corning closed at $23.33 yesterday.

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