JPMorgan downgrades Corning to Neutral, says ‘tepid recovery to underwhelm’

As previously reported, JPMorgan downgraded Corning to Neutral from Overweight with a price target of $36, down from $43. The magnitude of earnings upside in the near- to medium-term is likely to be more muted than previously anticipated and the “tepid recovery” is likely to “underwhelm relative to elevated consensus expectations” in Q4 and 2024, the analyst tells investors. The firm believes the variability in revenue recovery for each of Corning’s end-markets will limit the opportunity to deliver earnings growth of the “magnitude that consensus estimates contemplate,” the analyst added.