UBS analyst Joshua Spector upgraded the rating on Corning to a Buy today, setting a price target of $84.00.
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Joshua Spector has given his Buy rating due to a combination of factors that highlight Corning’s potential for significant growth. The ongoing expansion in AI-driven fiber optics is expected to surpass market expectations, contributing to a sustainable increase in growth and a positive re-rating of the stock. Spector anticipates that the fiber content in AI data centers will increase, leading to a higher sales CAGR for Corning’s Optical segment, which is projected to grow at approximately 27% through 2027. This growth is expected to drive an overall sales CAGR of around 13% for the company during the same period.
Additionally, Corning’s strategic contracts to enhance data center connectivity and its leadership in fiber optics position the company favorably. The expansion of fiber TAM and innovations in co-packaged optics are expected to further boost content uplift. Beyond fiber optics, Corning is exploring growth opportunities in the US solar market and other segments like Specialty, Life Sciences, and Automotive. These factors, combined with a raised price target and an increased EPS forecast, underpin Spector’s confidence in Corning’s potential, justifying the Buy rating.
Based on the recent corporate insider activity of 107 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GLW in relation to earlier this year.