Guggenheim Believes Corning Inc (GLW) Still Has Room to Grow


Guggenheim analyst Rob Cihra maintained a Buy rating on Corning Inc (NYSE: GLW) today. The company’s shares opened today at $36.30, close to its 52-week high of $36.56.

Cihra observed:

“We continue to expect meaningful reacceleration in GLW’s Y/Y revenue and EPS growth in 2H18E, driven by new capacity ramps across 1) 10.5G Display glass for BOE, 2) Optical fiber and 3) Auto filters, and believe 2019E consensus remains too low. We tick our price target +$3 to $41, applying 19x EV/EBITDA multiples to 2019E, on improved revs+profit growth, and to capture some of the optionality in future TAM expanders like Gorilla Glass for Automotive and Valor Glass for pharmaceutical packaging, where GLW is currently spending but barely yet producing revs. Highlighting its capacity ramps and associated margin leverage, we continue to forecast GLW’s revenue and EPS growth reaccelerating to +14%Y/Y and +24%Y/Y in 2H18E from +7%Y/Y and -8%Y/Y in 1H18.”

According to TipRanks.com, Cihra is a 4-star analyst with an average return of 7.9% and a 53.0% success rate. Cihra covers the Consumer Goods sector, focusing on stocks such as Western Digital, Netgear, and NetApp.

Corning Inc has an analyst consensus of Moderate Buy, with a price target consensus of $37.10, which is a 2.2% upside from current levels. In a report issued on September 14, Citigroup also upgraded the stock to Buy with a $40 price target.

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The company has a one-year high of $36.56 and a one-year low of $26.11. Currently, Corning Inc has an average volume of 5.17M.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. Last month, Christine Pambianchi, the SVP HR of GLW sold 1,000 shares for a total of $33,650.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Corning, Inc. develops and manufactures specialty glass and ceramics. The company provides glass for notebook computers, flat panel desktop monitors, LCD televisions, and other information display applications; optical fiber and cable and hardware and equipment products for the telecommunications industry; ceramic substrates for gasoline and diesel engines in automotive and heavy duty vehicle markets; laboratory products for the scientific community and specialized polymer products for biotechnology applications; advanced optical materials for the semiconductor industry and the scientific community; and other technologies. It operates through through the following business segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences. The Display Technologies segment manufactures glass substrates for active matrix liquid crystal displays which are used primarily in notebook computers, flat panel desktop monitors, and LCD televisions. The Optical Communications segment manufactures optical fiber and cable, and hardware and equipment to being a comprehensive provider of industry-leading optical solutions across the broader communications industry pioneer optical fiber, cable and connectivity solutions. The Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile and stationary applications around the world. The Specialty Materials segment manufactures products that provide more than 150 material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs. The Life Sciences segment develops, manufactures and supplies scientific laboratory products. Corning was founded by Amory Houghton Sr. in 1851 and is headquartered in Corning, NY.

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