Positive Growth Outlook for Corning Driven by Optical and Solar Segments

In a report released today, Wamsi Mohan from Bank of America Securities maintained a Buy rating on Corning (GLW – Research Report), with a price target of $56.00.

Wamsi Mohan has given his Buy rating due to a combination of factors that suggest a positive outlook for Corning’s future performance. One significant factor is the potential for growth in Corning’s Optical segment, driven by the increasing demand for optical connectors to replace copper in data centers. This transition is expected to significantly boost revenues, as Corning is well-positioned to capture a substantial market share due to its innovations and strong presence in the U.S. market.
Additionally, Corning’s strategic focus on the Solar industry is another reason for the optimistic rating. The company’s 100% U.S.-based manufacturing provides a competitive edge, and management has projected significant growth in this sector over the coming years. Furthermore, Corning’s efficient capital expenditure strategy and anticipated improvements in return on invested capital (ROIC) reinforce the confidence in its ability to achieve consistent free cash flow growth. These factors combined with the current stock price and price objective suggest a favorable investment opportunity.

Mohan covers the Technology sector, focusing on stocks such as Apple, Western Digital, and International Business Machines. According to TipRanks, Mohan has an average return of 10.5% and a 58.08% success rate on recommended stocks.