UPDATE: Citi Downgrades Corning (GLW) to Neutral 'On Weakening Consumer Demand Backdrop'

Citi analyst Asiya Merchant downgraded Corning (NYSE: GLW) from Buy to Neutral with a price target of $37.00 (from $46.00).

The analyst comments "We are downgrading Corning to Neutral from Buy. We are reducing our estimates in glass substrate consumption given lower PC and tablet demand, coupled with lower visibility in demand recovery for premium/large size TVs. Our prior expectations for low single digit growth in Display revenues was predicated on a stable notebook and PC demand environment along with recovery in TV demand in 2H’22 (World cup related). Given our expectations for a demand downtick in PCs coupled with reduced expectations for demand recovery in 2H, we are cutting our Display revenue expectations. While fundamentals in optical (5G, broadband builds) remain strong, we believe upside remains gated by capacity expansion coupled with potential for demand pause amongst enterprises/cloud customers as macro pressures intensify. While valuation levels are not stretched, we believe a more cautious outlook near term is warranted till demand and margin expansion outlook improves."

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 $33.13 yesterday.

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