Zacks Investment Research upgraded shares of Corning Inc (GLW) from UNDERPERFORM to NEUTRAL on April 11, 2013, with a target price of $14.00.
Corning is primarily a developer of advanced glass substrates for multiple markets. December quarter earnings beat the Zacks Consensus Estimate although the outlook remains uncertain given soft demand for TVs. In this backdrop, Corning's dependence on the display market is reason for concern, although its strong position in other markets should also not be discounted. However, management stated that glass volumes are expected to increase from last year with price declines moderating. Additionally, while Corning's huge debt balance adds to its risk, net cash remains positive and interest payments small with respect to earnings. We think that the positives offset the negatives at this point and are therefore upgrading the shares from Underperform to Neutral.
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