Canaccord Genuity Morning Coffee on Corning (GLW): Strong Like Gorilla Glass
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Price: $148.97 -1.64%
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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Canaccord Genuity Morning Coffee on Corning (NYSE: GLW): Strong like Gorilla Glass.
Shares of Corning are down roughly 40% over the past 12 months; however, a Barron’s article published over the weekend suggests that patient investors may be rewarded in the coming years. The company has five major divisions with its display technologies segment contributing roughly 90% to the bottom line. This unit has struggled of late due to a slowdown in the display glass market and management expects further pricing and margin pressure in early 2012 before prices stabilize. Competition has increased and inventory is tightening as demand for televisions and monitors has fallen over the past few years. While the TV market has slowed, Corning can still grow through the booming smartphone and tablet markets. One analyst believes that new offerings from Apple (Nasdaq: AAPL) and other smartphone/tablet makers can help the company build momentum. Additionally, management may look to pay shareholders to ease short term concerns through share buybacks or an increase to its dividend. Capital spending is expected to be cut dramatically, dropping $600 million to a range of $1.2-1.3 billion. Another analyst who is bullish on Corning notes that with shares trading below book value, any buybacks will be “automatically accretive to earnings.”
Shares of Corning are down roughly 40% over the past 12 months; however, a Barron’s article published over the weekend suggests that patient investors may be rewarded in the coming years. The company has five major divisions with its display technologies segment contributing roughly 90% to the bottom line. This unit has struggled of late due to a slowdown in the display glass market and management expects further pricing and margin pressure in early 2012 before prices stabilize. Competition has increased and inventory is tightening as demand for televisions and monitors has fallen over the past few years. While the TV market has slowed, Corning can still grow through the booming smartphone and tablet markets. One analyst believes that new offerings from Apple (Nasdaq: AAPL) and other smartphone/tablet makers can help the company build momentum. Additionally, management may look to pay shareholders to ease short term concerns through share buybacks or an increase to its dividend. Capital spending is expected to be cut dramatically, dropping $600 million to a range of $1.2-1.3 billion. Another analyst who is bullish on Corning notes that with shares trading below book value, any buybacks will be “automatically accretive to earnings.”
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