UPDATE: JPMorgan Upgrades Corning (GLW) to Overweight

April 19, 2021 1:42 AM EDT
Get Alerts GLW Hot Sheet
Price: $43.50 +1.52%

Rating Summary:
    10 Buy, 13 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 26 | Down: 9 | New: 37
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(Updated - April 19, 2021 5:06 AM EDT)

JPMorgan analyst Samik Chatterjee upgraded Corning (NYSE: GLW) from Neutral to Overweight with a price target of $55.00 (from $39.00).

The analyst comments "We are upgrading our recommendation on shares of GLW to OW led primarily by our improved outlook for the Optical segment, a key beneficiary of the broader adoption of highspeed broadband connectivity on account of its leadership position in fiber, which is benefiting from upcoming investments from service providers as well as investments facilitated by the RDOF funding and the government infrastructure plan. In addition to Optical, we see an improved outlook for Display even beyond the temporary tailwinds, with stickiness of pricing supporting a better revenue growth outlook long-term. Led by the improved outlook for the key segments, we now see the earlier aggressive top-line growth targets of 6%-8% to be achievable through 2025, which given the high fixed cost basis for GLW, is likely to translate into strong earnings growth in the range of 12%-15% through 2025. With the improved outlook, we see the appropriate valuation comparable to be closer to other industrial technology companies, which are trading at an average multiple of ~24x 2022 P/E."

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 $45.80 yesterday.

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