Corning (GLW) PT Lowered to $44, Susquehanna Sees Y/Y Declines in 2022

Susquehanna analyst Mehdi Hosseini lowered the price target on Corning (NYSE: GLW) to $44.00 (from $48.00) to account for lower Display revenues and higher overall op-ex, more than offsetting higher revenue forecast for Optical and Specialty Material.

The analyst reiterated a Neutral rating, stating "Our analysis of the (Electronic) glass demand through 2022 suggests a correction in Corning's Display is looming with revenues there most likely declining Y/Y in 2022. Given Display's above corporate average margin profile, this should more than offset higher revenue forecast for both Optical Communication and Specialty Material. Our updated estimates already account for higher contribution from Other Revenues, accounting for 8% of total vs. 2-4% mix from prior years. Other revenues consist of (exterior/interior) Auto Glass, Valor and Polysilicon (Hemlock). All in all, our updated CY21/22 EPS estimates of $1.99/$2.30 compare to consensus of $2.12/$2.41."

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