Corning's AI Opportunity Is Only Getting Started: Analyst

Bank of America Securities analyst Wamsi Mohan reiterated a Buy rating on Corning Inc. 79 price on July 6. Mohan expects Corning’s second-quarter results to reinforce confidence in a stronger second half, with Optical Communications driving revenue and earnings at or above guidance. 6 billion.

It also expects adjusted EPS of 76 cents, near the high end of the company’s 73-cent to 77-cent guidance range. Optical Communications Mohan identified Optical Communications as Corning’s key growth driver, supported by demand for AI infrastructure. He said Corning is benefiting from scale-up, scale-out, and scale-across AI buildout trends, particularly in fiber, connectivity, and cabling. 7% year over year.

12 billion, while Carrier revenue is projected to increase 17% to $932 million. Lumen Technologies Mohan said demand tied to Lumen Technologies Inc. (NYSE: LUMN ), data-center interconnect activity, and fiber-to-the-home projects should support Carrier momentum. That support should continue even after stronger first-quarter activity pulled some seasonal demand forward.

Solar And Glass Businesses BofA identified Solar as Corning’s main near-term headwind. Mohan expects a wafer transition to add about $30 million in second-quarter expense, pressuring margins before the drag eases in the second half. In Glass Innovations, BofA expects mid-single-digit sequential and year-over-year growth, led by Specialty Materials. Mohan also sees longer-term upside from GlassBridge technology and future glass substrate opportunities tied to advanced semiconductor packaging around 2029 to 2030.

99. 57 billion in 2028. BofA values Corning at 37 times its 2028 EPS estimate. Mohan said the premium multiple reflects recoveries in Display, Environmental, and Specialty, as well as multiyear growth in Optical from hyperscalers and generative AI demand.

2 billion and EPS of 87 cents to 91 cents. The outlook reflects Enterprise growth, steadier Carrier revenue, and easing Solar-related pressure. Corning Technical Analysis Corning remains in a solid long-term uptrend. 81.

The moving averages also remain in a bullish alignment, with the 20-day SMA above the 50-day SMA and the 50-day SMA above the 200-day SMA. 25. That level could act as an important support or resistance point. 61 sits above the current price, suggesting short-term momentum has eased.

22. An RSI near 50 signals neutral momentum and suggests the stock is consolidating rather than becoming overbought or oversold. Traders are watching nearby technical levels after the stock reached a new 52-week high in June. 50 Corning Earnings And Analyst Outlook The company’s next earnings report is expected on July 28.

Wall Street expects earnings of 75 cents per share, up from 60 cents a year earlier. 04 billion. 6, reflecting a premium valuation. 60.

Recent analyst actions include: Bank of America: Buy; raised price forecast to $243 on July 6. Mizuho: Outperform; raised price forecast to $270 on July 1. Truist Securities: Hold; raised price forecast to $205 on June 22. 44 at the time of publication on Monday, according to Pro data.

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