Truist Upgrades Corning to Buy
Truist Securities upgraded Corning Incorporated (ticker GLW) to Buy from Hold, noting a roughly 45% decline in the stock price during July, which the broker views as an attractive entry point. The 12‑month price target was reduced to $175 from $205, reflecting higher discount rates and lower valuation multiples in the sector.
Truist expects sustained AI data‑center investment, rising demand for optical networking products and expanding operating margins to generate approximately 30% annual earnings‑per‑share growth from 2026 through 2029. The firm projects EPS of $3.34 for 2026, $4.32 for 2027 and $5.74 for 2028, and raises capital‑expenditure assumptions to support the anticipated AI‑related demand.
Revenue growth is projected to be driven by the Optical and Solar businesses, which together are expected to deliver an 18% compound annual growth rate through 2028. The Optical segment, accounting for about 45% of Corning’s revenue, continues to benefit from AI infrastructure spending and fiber‑to‑the‑home deployments. Truist also highlighted Corning’s new Photonics market‑access platform as a potential long‑term catalyst.
Operating margins are forecast to rise to 26% by 2028 and 28% by 2030. The broker identified three primary risks: a slowdown in AI‑related capital spending by hyperscale customers, ongoing weakness in consumer‑electronics and automotive end‑markets, and inflationary pressures that could compress profitability.