Barclays Maintains an 'Overweight' on Corning (GLW); Modest Expectations Heading into Upcoming CFO Presentation
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Price: $149.84 -1.06%
Rating Summary:
16 Buy, 12 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
16 Buy, 12 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Corning (NYSE: GLW) price target of $17.00.
Barclays analyst says, "Following Corning's recent preannouncement, we have modest expectations heading into the company's presentation at our Barclays Capital Global Tech Conference. We continue to believe data points emerging from overall demand trends for LCD TVs are better than feared, supporting our thesis for a likely 1Q12 recovery in glass shipments given inventory contraction through 2011. However, emerging demand issues at LG Display (NYSE: LPL) injected new concerns on Corning's ability to fully capture the benefit of a shipment recovery and raised questions on whether potential share issues are due to normal industry dynamics (we are in this camp) or are structural in nature. We therefore believe it is unlikely that Corning's commentary will alleviate the latter overhang on the stock until visibility on its longer-term positioning at LGD improves."
"Given uncertainty on whether LGD share loss is a routine pricing issue or a structural headwind, we believe management's commentary is unlikely to alleviate the emerging overhang on the shares. Our own checks confirm GLW's share loss at LGD, though we believe it was due to competitive pricing (i.e., NEG) and thus believe it is too early to extrapolate longer-term structural shifts within GLW's customer base. This coupled with its share buyback, low multiple, and improving cash generation profile keeps GLW as a preferred play."
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 $13.62 yesterday.
Barclays analyst says, "Following Corning's recent preannouncement, we have modest expectations heading into the company's presentation at our Barclays Capital Global Tech Conference. We continue to believe data points emerging from overall demand trends for LCD TVs are better than feared, supporting our thesis for a likely 1Q12 recovery in glass shipments given inventory contraction through 2011. However, emerging demand issues at LG Display (NYSE: LPL) injected new concerns on Corning's ability to fully capture the benefit of a shipment recovery and raised questions on whether potential share issues are due to normal industry dynamics (we are in this camp) or are structural in nature. We therefore believe it is unlikely that Corning's commentary will alleviate the latter overhang on the stock until visibility on its longer-term positioning at LGD improves."
"Given uncertainty on whether LGD share loss is a routine pricing issue or a structural headwind, we believe management's commentary is unlikely to alleviate the emerging overhang on the shares. Our own checks confirm GLW's share loss at LGD, though we believe it was due to competitive pricing (i.e., NEG) and thus believe it is too early to extrapolate longer-term structural shifts within GLW's customer base. This coupled with its share buyback, low multiple, and improving cash generation profile keeps GLW as a preferred play."
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 $13.62 yesterday.
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