Corning reaction to Meta fiber news ‘seemingly overdone,’ says Morgan Stanley

After Corning (GLW) announced a deal with Meta (META) for up to $6B through 2030 in sales of optical fiber, cable, and connectivity, Morgan Stanley estimates bull case EPS expectations for Corning in FY27 probably move closer to $5, from something in the $4.50-$4.75 range. “That is seemingly impetus for a 5-10% move vs. the 15-20% move we have seen,” says the analyst, who calls today’s reaction “seemingly overdone.” However, the deal points to longer term positive positioning for the company and draws attention back to the optical trade, which had begun to fade, the analyst added. The firm, which had not been expecting a raise to Project Springboard targets on the Q4 earnings call tomorrow, now sees more of an opportunity for the 30% enterprise Optical FY23-27 CAGR target to be raised to incorporate the Meta agreement. Morgan Stanley has an Equal Weight rating and $98 price target on Corning shares.