Zacks Investment Research downgraded shares of Corning Inc. (GLW) from OUTPERFORM to NEUTRAL on September 24, 2014, with a target price of $21.00.
Corning is primarily a developer of advanced glass substrates for multiple markets. Second quarter earnings were in-line with the Zacks Consensus Estimate. The weaker-than-expected demand for touch-screen computing devices impacted revenues, but Corning's strong position in other markets should not be discounted. Management guidance indicates softer-than-expected demand in the important GG business. Though Corning's huge debt balance adds to its risk, net cash remains positive and interest payments small with respect to earnings. With growth prospects for GG becoming uncertain and sapphire growing into more of a threat, we think it is time to downgrade the shares to Neutral.
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