Barclays cuts Corning stock price target to $52 from $53

Published 29/01/2025, 20:46
Barclays cuts Corning stock price target to $52 from $53

On Wednesday, Barclays (LON:BARC) made a slight adjustment to Corning’s stock price target, bringing it down to $52.00 from the previous target of $53.00. The firm kept its rating at Equalweight for the shares of Corning (NYSE:GLW), which currently commands a market capitalization of $42.68 billion. According to InvestingPro data, 4 analysts have recently revised their earnings upward for the upcoming period, suggesting growing confidence in the company’s prospects despite the price target adjustment. The revision follows Corning’s latest financial performance, which was notably bolstered by its Optical Communications segment. The Enterprise division within this segment showed a robust year-over-year growth exceeding 90%. With total revenue reaching $12.61 billion in the last twelve months and maintaining dividend payments for 18 consecutive years, Corning has demonstrated consistent operational strength. InvestingPro analysis indicates the company’s net income is expected to grow this year, with comprehensive insights available in the Pro Research Report covering this prominent electronic equipment manufacturer.

The Barclays analyst acknowledged the strong results but anticipates a slowdown in the Enterprise growth rate for the current year, citing more challenging year-over-year comparisons. Despite this forecasted moderation, the overall assessment of Corning’s stock remains unchanged at Equalweight, indicating that the firm’s outlook on the stock is neither particularly bullish nor bearish.

Corning has also provided a new core Yen rate for its Display Technologies business. According to Barclays, this update is consistent with their expectations, especially considering the double-digit price increases in the second half of the previous year. This information provides investors with a clearer picture of how currency fluctuations may impact Corning’s display business moving forward.

The Display Technologies segment is an important part of Corning’s operations, and the new Yen rate will likely be a key factor in the company’s financial planning and reporting. The company’s ability to navigate the changing currency rates while maintaining price increases could be crucial for its performance in the upcoming periods.

Investors and stakeholders in Corning will continue to monitor the company’s progress, particularly in its Optical Communications segment, as it moves through the year and faces the anticipated moderation in growth within the Enterprise division. The stock has shown strong momentum with a 7.81% year-to-date return, though InvestingPro’s Fair Value analysis suggests the stock is currently trading above its intrinsic value. The price target adjustment by Barclays reflects subtle shifts in market conditions and expectations, while the Equalweight rating suggests a wait-and-see approach to the stock at the current juncture, particularly given its elevated P/E ratio of 272.6.

In other recent news, Corning Inc ’s fourth-quarter earnings surpassed expectations, with revenues of $3.87 billion, exceeding the guidance figure of $3.75 billion, and earnings per share (EPS) reaching $0.57. BofA Securities analyst Wamsi Mohan responded by raising the price target for Corning shares to $65 and maintaining a Buy rating. Corning’s gross margin also expanded by 170 basis points year-over-year to 38.6%. Looking ahead, the company has provided guidance for first-quarter revenue and EPS at the mid-point of $3.6 billion and $0.50 respectively. Mohan highlighted several growth opportunities for Corning, including the cyclical recovery in its Optical business and potential in the solar industry. For the full year 2024, Corning reported sales of $13.1 billion, a gross margin of 32.6%, and operating margin of 8.7%. These are recent developments concerning Corning Inc.

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