luchschen/iStock via Getty Images
Corning (NYSE:GLW) is getting some positive commentary from Wall Street, as Susquehanna upgraded the stock and raised its price target, noting that earnings estimates are conservative and display volumes are likely to start rising in the back half of 2022.
Analyst Mehdi Hosseini raised his rating to positive from neutral and upped the price target to $50, noting that the $2.25 estimate for 2022 has "certainly been de-risked."
"We expect the panel price decline to bottom out by mid-2022 and for 2H TV unit shipments to benefit from easier compares," Hosseini wrote in a note to investors, while adding that estimates could be revised higher later in the year, thanks to strength in the Display division.
Corning shares are down nearly 0.5% to $40.37 in pre-market trading on Friday.
In addition to the aforementioned reasons, Hosseini said the upgrade was also due in part to continued growth in Fiber, going into next year, along with EUV system shipment growth, which "should help diversify the revenue mix within the Specialty Material business unit," Hosseini explained.
The upgrade comes after Corning reported non-GAAP earnings of 54 cents per share and $3.71 billion in revenue, compared to earnings estimates of 52 cents per share.
For the first-quarter, Corning said it expects to earn between 48 cents and 53 cents per share on an adjusted basis, with revenue coming in between $3.5 billion and $3.7 billion.
Yesterday, Goldman Sachs upgraded Corning (GLW) to buy, noting there were multiple tailwinds ahead for the company.