The firm upgraded the glass producer to "positive" from "neutral," raising its price target to $25 from $15. Analyst Mehdi Hosseini wrote that a multi-year TV replacement cycle could help boost Corning's earnings.
A recent deal with deal with Samsung could also help Corning as it shifts Gorilla Glass production to South Korea to Japan. The move would help improve cost and margins for the glass according to Hosseini, keeping Gorilla Glass more cost effective than the sapphire glass GT Advanced (GTAT) is set to make for Apple (AAPL).
Hosseini wrote that 45% of Corning Gorilla Glass demand came from tablets. That demand will likely remain safe as sapphire isn't cost-effective on larger displays.
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TheStreet Ratings team rates CORNING INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CORNING INC (GLW) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."