Since were talking about Corning today:
Hot Research: Corning Boosted by Apple Investment -- Barrons.com
3:30 pm ET May 15, 2017 (Dow Jones) Print
(The companies mentioned in Hot Research are subjects of research reports issued recently by investment firms. Their opinions in no way represent those of Barrons.com or Dow Jones & Company, Inc. Some of the reports' issuers have provided, or hope to provide, investment-banking or other services to the companies being analyzed. Share prices at the time the report was issued and the date of the report are in parentheses.)
Corning (GLW: NYSE)
By Wells Fargo Securities ($28.91, May 12, 2017)
Apple announced Corning will receive $200 million from its Advanced Manufacturing Fund to support the glass maker's research and development, capital equipment and processing capabilities at its Harrodsburg, Ky., facility.
We think the investment is a net positive for Corning (ticker: GLW) as it not only implies the potential to see incremental future business with an important customer, but also should lead to capital-expenditure and operating-expenditure efficiencies due to the success of the company's co-investment model, where customers like Apple (AAPL) help fund innovation and capacity expansion.
Following the announcement, we slightly bump our Corning price target from $27.50 to $29.00 due to evidence that fundamentals at Corning remain healthy and to reflect the rise in peer-group multiples. That said, with the stock already trading at 15 times our above-consensus estimated calendar 2018 earnings per share of $1.95 we think much of the good news is reflected in valuation and recommend waiting for a pullback before potentially considering adding to a position in the company's shares.
We view weak TV demand, soft carrier capital expenditure, and competition as key risks.
-- Jess Lubert -- Michael Kerlan
Comments: E-mail online.editors@barrons.com
(END) Dow Jones Newswires
May 15, 2017 15:30 ET (19:30 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
