Susquehanna Cuts Price Target on Corning (GLW) Following an Informal Event
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Susquehanna reiterated a Positive rating on Corning (NYSE: GLW), and cut the price target to $22.00 (from $27.00), following the company's commentary on incremental weakness from China.
Analyst Mehdi Hosseini commented, "Corning held an informal event at its HQ in upstate NY which involved informal conversations with divisional GMs and a tour of its R&D facility. We walked away concluding the company will likely further streamline its P&L (like divesting its Dow equity) while putting incremental focus on FCFs. We also don't rule out the company committing a percentage of its FCFs on an ongoing basis to capital return while also modifying its F/X hedging strategy with the intention of providing additional transparency. All in all, the near term demand environment is challenging, and 2H is tracking below the company's prior expectations discussed during the July earnings conf call. But, Corning remains razor focused on leading edge R&D in various industries (which is refreshing in an environment where many focus on the next 1-2 quarterly earnings), which combined with incremental focus on FCF and improving transparency does provide us with confidence the future is bright. We are reducing our estimates across the board to account for incremental weakness in 2H demand, and thus lower our PT from $27 to $22. But, we see downside risk to the stock limited to ~$3 (based on tangible BV of $14) with upside of $5+ (pls see Figures 1-5 inside for trends in valuation multiples)."
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 $16.68 yesterday.
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