Susquehanna Remains Positive on Corning (GLW) Following Industry Checks

Susquehanna reiterated a Positive rating on Corning (NYSE: GLW), and raised the price target to $24.00 (from $22.00), following industry checks in Korea and Taiwan. The checks suggest that despite LCD panel ASP pressure, TV demand is actually exceeding prior expectations.

Analyst Mehdi
Hosseini commented, "Our checks over the past few weeks in Korea and Taiwan suggest that despite LCD panel ASP pressure, TV demand is actually exceeding prior expectations. We attribute this to elasticity which in part is driven by lower panel cost (to TV set manufacturers). Lower TV manufacturing cost is passed onto customers, and thus driving better bargains for them while the screen size is increasing. We also note with panel ASP in 1Q declining by an avg. of 10% Q/Q, and expected down 5-10% in 2Q, panel ASP decline appears to be decelerating considering the 15-20% Q/Q decline in 3Q-4Q of 2015. Our checks also suggest Samsung and LG will soon start with 2-yr, $10B of OLED manufacturing investment. We believe this is Apple's attempt to push for flexible display technology, and a plastic OLED may just be nothing but headlines. With Samsung two years late with commercialization of its own flexible display, Apple's involvement will actually help intensify R&D work. This should help with a flexible display to hit the market by 2018 timeframe, which will change consumer electronics as we know it. This is viewed as positive for GLW as it finally helps the company to drive revenues from its Willow (flexible glass) product, while Sapphire will remain the dominant cover glass material in the marketplace."

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 $20.25 yesterday.

You May Also Be Interested In

• Boston Scientific (BSX) PT Raised to $83 at Stifel
• Equity Residential (EQR) PT Raised to $70 at Evercore ISI
• Boeing (BA) PT Lowered to $240 at Stifel