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On Tuesday, Citi analysts increased their price target on Corning shares (NYSE:GLW) to $58.00, up from the previous $58.00, while reiterating a Buy rating on the stock. The company's shares, currently trading at $49.84, are near their 52-week high of $51.03, reflecting strong momentum with a remarkable 68.54% return over the past year.
According to InvestingPro analysis, Corning appears to be trading above its Fair Value. The firm's analysts highlight Corning's strong positioning for both secular and cyclical demand recovery within its various business segments, which they believe will contribute to significant earnings per share (EPS) growth and returns for shareholders.
Corning, known for its innovations in specialty glass and ceramics, has been identified by Citi analysts as having a favorable outlook due to positive trends in its core Optical, Display, and Specialty segments. These segments account for approximately 70% of the company's revenues of $12.61 billion, and their improving dynamics are key reasons for the analysts' bullish stance on Corning's revenue and profit prospects. The company has maintained dividend payments for 18 consecutive years, demonstrating consistent shareholder returns.
The analysts' optimism is further supported by Corning's Springboard plan, which outlines the company's growth strategies and targets. They anticipate that Corning's limited capacity requirements to achieve its planned growth will result in enhanced free cash flow (FCF) generation capabilities. This, in turn, is expected to facilitate a resumption in rewarding shareholders.
Citi's revised estimates have led to a modest increase in their financial projections for Corning. The new price target of $58 reflects around 21 times the estimated EPS for the fiscal year 2026. Investors are keeping an eye on Corning's upcoming earnings report, which is scheduled to be released on January 29th, to assess the company's performance and future prospects.
For deeper insights into Corning's financials and growth potential, InvestingPro subscribers can access comprehensive analysis, including 8 additional ProTips and detailed financial metrics in our exclusive Pro Research Report, part of our coverage of over 1,400 US stocks.
In other recent news, Corning Incorporated has reported strong financial performance with an 8% rise in Q3 2024 sales to $3.73 billion and a 20% increase in earnings per share (EPS) to $0.54, driven mainly by a 55% surge in the Optical Communications segment's Enterprise sales. The company also expects a buoyant Q4, forecasting sales growth of approximately 15% and a 40% increase in EPS. In addition, JPMorgan has reaffirmed its Overweight rating on Corning with a steady price target of $60.00, highlighting the company's strong market performance and stable demand.
Simultaneously, Corning is dealing with a European Commission antitrust probe concerning its supply of Alkali-aluminosilicate glass. In response to preliminary findings suggesting potential market dominance and anticompetitive practices, Corning has proposed to discard exclusivity clauses in its contracts with original equipment manufacturers (OEMs) and finishers. These commitments, which apply globally, are expected to be in effect for nine years.
Furthermore, data from market research company Omdia indicates a modest month-over-month increase in average LCD TV panel prices for December, marking the first year-over-year price increase after four consecutive months of declines. Omdia's data also suggests another expected modest month-over-month price increase for January, indicating a continuation of resilient pricing and demand trends.
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