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Corning Seen More Likely to Achieve Higher Sales Growth Over Long Term, UBS Says

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-- Corning's (GLW) is seen more likely to achieve higher sales growth and profit margin gains with a stronger long-term growth outlook, UBS said in a Tuesday note.

Investor expectations on pricing and margins may have gotten too high, which led to the company's recent stock decline of 9%, UBS analysts said.

The company's Q2 guidance matched UBS's expectations, excluding solar maintenance impacts, and the analysts said they boosted their estimated 2027 and 2029 sales based on their higher conviction for growth. Profit margins continue to rise as the company posts 40% to 50% incremental margins in its optical segment, although there may be some short-term volatility as capacity comes online, according to the note.

Over the next three years, the analysts project compound annual growth rate of 17% for sales and 32% for EPS. Their updated 2028 estimates include around $26 billion for sales and $5.80 for EPS.

UBS maintained the company's stock rating at buy and raised the price target to $179 from $171.

Price: $149.59, Change: $-3.46, Percent Change: -2.26%

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