Corning Inc

GLW: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$53.00	Mjfrvd	Yhmmmmvt

Corning: We Raise Our Optical Forecast After Positive Guidance Update

William Kerwin

Jul 8, 2024

We raised our fair value estimate for narrow-moat Corning to $37 per share from $35, as we raise our medium-term growth estimates for its optical fiber sales. Corning previewed its second-quarter results above our estimates and at or above the top end of previous guidance. Management attributed this upside primarily to data center sales related to artificial intelligence. We now expect stronger growth for Corning’s data center and AI sales over the rest of 2024 and over the next three years. We believe this can drive further operating leverage and improved profitability as well. Shares rose 12% on the pre-release, and we see shares as moderately overvalued.

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