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Key Takeaways
- Corning shares rose Wednesday as Mizuho analysts upgraded the stock, highlighted growth in the company’s business driven by data centers, amid surging demand for artificial intelligence.
- A recent slip in stock’s price creates an “attractive entry point” to the stock, the analysts said.
- Mizuho analysts said the recent pullback likely had more to do with last month’s rotation out of tech stocks, as they have seen “no overall slowdown” in Corning’s core business.
Corning’s (GLW) stock price rose Wednesday after an upgrade from Mizuho analysts, who said the recent pullback following last month’s earnings report has created an “attractive entry point.”
The analysts raised their rating to “outperform” from “neutral,” and lifted their price target for the stock to $47 from $44, writing that they have seen “no overall slowdown in the company’s business and growth programs.”
The New York-based company manufactures a variety of specialized glass and ceramic products, from glass for smartphones and televisions to fiber optic cabling solutions for data centers, which have seen a surge in demand as investment in artificial intelligence (AI) has grown.
Corning Could Be Poised For Gains After Slip From July Rally
Corning shares surged to a three-year high last month after the company lifted its revenue and profit outlook on demand for its optical connectivity products. However, the stock regressed later as the company’s second-quarter results and third-quarter projections fell short of estimates.
Mizuho analysts said they believe the recent decline in Corning’s stock price had more to do with last month’s market rotation than anything related to Corning’s business model or sales. They wrote that an upcoming review of Corning’s optical glass fiber business could boost Corning’s stock as it highlights one of the company’s strengths.
Corning shares closed 3.3% higher at $42.08 Wednesday and have gained over 38% since the start of the year.