Cantor Maintains Hold On Corning As It Delivers Sales Upside But Misses On Margins

Cantor analyst Brian White maintained a Hold rating on Corning Inc (NYSE:GLW) but slightly raised his price target to $20 (from $18), which still represents a potential downside of 19% from where the stock is currently trading.

White noted, “Corning highlighted healthy trends across its display business during this morning’s 4Q:14 earnings call, and the outlook around this segment was also constructive, highlighting a continued recovery in the LCD business. That said, there was concern around the company’s gross margin miss in the quarter, and we believe the company’s decision to “recast” results from the past two years to reflect a new core reporting rate for the Japanese Yen (i.e., 99 yen to the dollar in 2015 vs. 93 in 2014 and 2013) added unnecessary confusion to the call.”

For 1Q:15, the analyst is increasing his sales estimate to $2.537 billion from $2.390 billion given healthy display trends, and raising his EPS estimate to $0.34 from $0.32 but with approximately a $0.01 benefit from a lower tax rate. For 2015, White is also increasing his EPS estimate to $1.53 from $1.48, and his is initiating a 2016 EPS projection of $1.64.

Corning Incorporated manufactures and sells specialty glasses, ceramics, and related materials worldwide. 

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