Specialty glassmaker Corning Incorporated (GLW) saw its rating and price target boosted on Monday by analysts at Corning.
The analyst raised its rating on GLW to "Buy," and boosted its price target on the stock to $24 U.S. Corning shares had closed at $19.89 U.S. on Monday.
Deutsche Bank said that "We are upgrading shares as we see 2x more upside vs downside risk over the next year. We believe Street estimates will trend higher following robust TV/PC demand and tight capacity in 2010. This improved outlook, in addition to GLW’s foray into glass for thin film solar, we believe will drive its multiple higher.
"Shares are trading at the low-end of its trading range (11x CY10) and at a 20% discount to peers. Catalysts include 1) earnings (1/26), 2) analyst day (2/5; look for bullish commentary on solar) and 3) its first thin film solar win...Raising LCD glass volume and ASP forecasts; 2010 EPS + $0.11 to $1.77 U.S...Solar could be the next meaningful catalyst; $1B U.S. opportunity by 2013."
Corning shares rose 80 cents U.S., or +4%, in premarket trading Monday.
The Bottom Line
Some experts have removed shares of GLW from their "recommended" list last July 1, when the stock traded at $22.60 U.S. The company has a 1.01% dividend yield, based on last night’s closing stock price of $19.89 U.S. The stock has technical support in the $16 U.S.price area. If the shares can firm up, there could be overhead resistance around the $21-$22 U.S price levels. But a number of experts would remain on the sidelines for now.
Corning Incorporated (GLW) is not recommended at this time, holding a Dividend.com DARS Rating of 3.3 out of 5 stars.
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