Close

KeyBanc Starts Corning (GLW) at Hold, Calls Shares Attractive for Long-Term

January 5, 2012 5:17 PM EST
Get Alerts GLW Hot Sheet
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
Join SI Premium – FREE
KeyBanc initiates coverage on shares of Corning (NYSE: GLW) with a Hold rating.

The firm reports shares are currently attractive on a long-term basis, but over the short-term they seem to be correctly valued. KeyBanc highlights it would be more positive on the shares once management shows its ability to maintain market share and margins in Display, grow earnings in the non-Display segments, and smartly use its $2 billion per year in free cash flow.

An analyst at KeyBanc comments, "If Corning can maintain margins and market share and limit capital expenditures in Display, as we believe it can, this segment could generate roughly $1.5 billion in annual free cash flow over the next several years. We believe this cash could more than offset the EPS decline from lower Display-related earnings if deployed effectively via buybacks or acquisitions, ultimately driving high single-digit earnings growth for the Company over the next three to five years."

For FY11 and FY12, the firm is forecasting EPS of $1.76 and $1.50.

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 $13.17 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

New Coverage

Related Entities

KeyBanc, Earnings