Corning Down on Ratings Cut
Corning (GLW) - Get Report was down 3.2% in preopen Instinet trading after Merrill Lynch cut its intermediate-term rating on the stock to neutral from accumulate.
Merrill said Corning's high-margin fiber-optic cable business, which represents 20% to 25% of sales, will be "below our worst-case scenario" over the next few quarters. Merrill said it now expects the stock to produce a favorable return in 12 to 18 months, as opposed to a previous expectation of 12 months.
Merrill is maintaining its long-term buy rating.
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