NEW YORK (TheStreet) -- Cantor Fitzgerald maintained its "hold" rating on Corning (GLW) with a price target of $18, claiming the company will "modestly" enhance its position in Asia with the acquisition of Samsung's fiber optics business.
This morning, the New York-based technology company announced plans to acquire Samsung Electronics' (SSNLF) fiber optics business for an undisclosed amount in a transaction expected to be completed by the end of the first quarter of 2015, according to analysts.
"We estimate this business is approximately 7% to 8% the revenue size of Corning's optical communications business, and thus relatively small, but we anticipate the transaction to be modestly accretive to Corning's EPS in 2015," analysts said.
Shares of Corning closed up 0.44% to $21.01 yesterday.
Separately, TheStreet Ratings team rates CORNING INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CORNING INC (GLW) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 22.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GLW's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.60, which clearly demonstrates the ability to cover short-term cash needs.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- CORNING INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CORNING INC increased its bottom line by earning $1.34 versus $1.07 in the prior year. This year, the market expects an improvement in earnings ($1.47 versus $1.34).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 148.5% when compared to the same quarter one year prior, rising from $408.00 million to $1,014.00 million.
- You can view the full analysis from the report here: GLW Ratings Report