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Corning (GLW) Investors Breath Sigh of Relief on iPhone, Says Cantor

September 17, 2014 9:14 AM EDT
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Price: $32.96 -0.18%

Rating Summary:
    11 Buy, 13 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Cantor Fitzgerald maintained a Hold rating on Corning (NYSE: GLW) with a price target of $18. Comments follow management meetings. Analyst Brian J. White discussed the iPhone and potential competition from sapphire (NASDAQ: GTAT). He also discussed potential opportunity in the auto market, and noted constructive tends in LCD.

"A big topic of discussion on the trip was the perception of the growing allure of sapphire and the impact this could have on Corning’s Gorilla Glass franchise. In the near-term, there was a sigh of relief from investors as it relates to the new iPhones (i.e., iPhone 6 and iPhone 6 Plus) that skipped sapphire displays this year. Furthermore, we believe it is too early to be concerned about the possible threat of sapphire on next generation iPhones. Although Apple Watch includes sapphire on two of the three collections unveiled last week, we believe Gorilla Glass is on one collection," said White.

"The auto market was discussed as the largest, new opportunity for Gorilla Glass, and Corning is currently in discussions across approximately ten different models. In our view, the market opportunity is significant and previously estimated by Corning at approximately 5.5 billion square feet per year and larger than the LCD glass market at large. Corning discussed 2015 as a very important year for understanding the opportunity for Gorilla Glass in the automotive market. In our view, another interesting opportunity for Corning is within the company’s Environmental Technologies, where the company is optimistic around opportunities in China," he added.

The overall tone of the LCD market sounded constructive.

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 $20.64 yesterday.



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