UBS Maintains a 'Neutral' on Corning (GLW); Lowering Estimates and PT but 4Q Likely a Trough

UBS maintains a 'Neutral' on Corning (NYSE: GLW) price target lowered from $20 to $17.

UBS analyst says, "GLW updated 4Q guide today and expects SCP glass volumes to increase less (+7.5% vs prior +20%) and 4Q pricing down more (UBSe -15% seq vs -7.5% prior). GLW did not guide price and we est the large decline based on ~-25% SCP earn guide in conjunction with >vols. We
believe GLW gave up share to avert a price war, a fundamental positive for the industry going into ‘12. We continue to anticipate normal price declines in 1Q given announced reductions in industry capacity (~-18%) bringing supply in-line with demand, leaving less room for pricing actions."

"We lower our sales/EPS ests for 4Q11 and FY12 to $1.76B/$0.28 vs $1.84B/$0.37 prior and $7.8B/$1.55 vs $8.1B/$1.80 prior. Our lower outlook is primarily based on lower GLW glass vols for ’12 at +9% y/y vs +15% prior given GLWs share loss as well as on Gorilla growing from a lower base."

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 $13.19 yesterday.

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