NEW YORK (TheStreet) -- Shares of Corning Inc (GLW) were trading higher by 0.63% to $24 in early market trading Tuesday, after analysts at RBC Capital upped their rating on the maker of TV displays this morning.
The firm upgraded Corning to "outperform" from "sector perform" with a $26 price target.
RBC analysts cited benefits from the pending upgrade cycle and attractive pricing for its 4K ultrahigh-definition TV sets.
Analysts are expecting accelerating optical growth, strong cash returns, and improving earnings growth.
The Corning, N.Y.-based company manufactures specialty glass and ceramics.
Corning operates in five segments including display technologies, telecommunications, environmental technologies, specialty materials, and life sciences.
Separately, 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 a number of strengths, 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 largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GLW's debt-to-equity ratio is very low at 0.15 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 3.46, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for CORNING INC is rather high; currently it is at 53.33%. Regardless of GLW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GLW's net profit margin of 17.96% compares favorably to the industry average.
- CORNING INC has improved earnings per share by 45.0% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CORNING INC increased its bottom line by earning $1.73 versus $1.34 in the prior year. For the next year, the market is expecting a contraction of 13.3% in earnings ($1.50 versus $1.73).
- GLW, with its decline in revenue, slightly underperformed the industry average of 0.0%. Since the same quarter one year prior, revenues slightly dropped by 1.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: GLW Ratings Report