Morgan Stanley raised the firm’s price target on Corning (GLW) to $50 from $44 and keeps an Equal Weight rating on the shares. Increasing data speed needs necessitating more fiber and optical transmission has been a boon for Ciena (CIEN), Corning, Lumentum (LITE), and Coherent (COHR), which are up an average of about 80% since the beginning of 2024, the analyst tells investors. While the firm agrees that the AI opportunity is meaningful, it has been more reserved on optical valuations given the competitiveness of the space relative to other AI opportunities and the fact that optical names are trading at “meaningful premiums to historical multiples,” the analyst added.
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