Davenport Downgrades Corning (GLW) to Sell

November 18, 2008 2:44 PM EST

Davenport downgrades Corning Inc. (NYSE: GLW) from Neutral to Sell.

Davenport analyst says, "We lowered our rating on Corning to Reduce/Sell, since we believe there is potential risk that Corning’s shares could trade lower over the next six to nine months as weaker than expected consumer demand for LCD television contributes to further downward revisions in Corning’s earnings estimates. We would prefer to revisit Corning shares once the developed global economies emerge from the current recession and consumer demand for LCD television rebounds (this could occur in the second half of 2009). Corning is well positioned to weather the current economic down turn, since it has $3.2 billion in cash, or net cash of $1.7 billion after subtracting debt of $1.5 billion (only $250 million in debt is due over the next four years). However, there is potential risk that Corning could generate negative free cash flow over the next year due to lower cash flow from operations, estimated capital expenditures of $1 billion+ and potential restructuring charges."

Corning Incorporated (Corning) is a global, technology-based company that operates in four business segments: Display Technologies, Telecommunications, Environmental Technologies and Life Sciences.

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