Corning (GLW - Get Report) is the leading designer and manufacturer of glass and ceramic substrates found in liquid crystal displays, fiber-optic cables, automobiles and laboratory products. Three-quarters of the company's revenue stems from its display technologies and telecommunications segments.
Barclays' analysts say the positive outlook for the company is based on expectations for double-digit LCD (liquid crystal display) glass volume growth in 2011 and 2012; Corning's ability to return to its pricing strategy of 1% to 2% quarter-over-quarter average selling-price declines; and the emergence of its "Gorilla Glass," used on smartphones, computer tablets and PCs, as a strong earnings contributor given expectations of as much as $1 billion in revenue this year.Two weeks ago, Corning Chief Executive Officer Wendell Weeks said the company has the potential to increase sales to $10 billion by 2014, about 50% higher than in 2010. Barclays has a $30 price target on Corning's shares, set on May 9, which is about a 50% premium to its current price. Its shares have risen 8.7% this year and about 15% over the past year, giving the company a market value of $31 billion.
Timber industry giant Weyerhaeuser (WY - Get Report) has restructured over the past few years, including selling its paper business in 2007 and its corrugated-packaging unit in 2008. And then last year, it converted its corporate structure into a real estate investment trust (REIT) to reap tax benefits. Barclays' analysts say that "after a 16-year downturn in real lumber pricing (between 1993 and 2009), an upturn is under way." "Weyerhaeuser is a superior hard-asset play," they said, "whose highly productive timberlands thrive in an inflationary environment. We believe a multi-year cyclical upturn in demand, prices and profits began in 2010, and positive momentum should build in 2011, 2012 and beyond." The company's non-timber assets include a wood-products division, a homebuilding unit and a pulp business. On May 2, Barclays put a $33 price target on Weyerhaeuser's shares, a 50% premium to its current price. Its shares are up 20% this year, but have a one-year gain of only 3.8%. The timber company has a market value of $11 billion.