Corning: Bernstein Turns Cautious; Stock Tumbles

Corning (GLW) shares are selling off this morning after Bernstein Research analyst Jeff Evenson cut his rating on the stock to Market Perform from Outperform, while maintaining a $15 target on the stock, which yesterday closed at $15.84. Evenson trimmed his 2009 EPS estimate to 90 cents from 94 cents; for 2010 he goes to $1.06, from $1.11. Evenson’s downgrade follows Corning’s better-than-expected Q1 earnings report Monday morning , which also featured an upward revision in the company’s outlook for full year glass demand. Howeover, Evenson sees a number of risks ahead: One possibility, he writes, is Korean TV manufacturers taking share or cutting Taiwanese orders more aggressively than he is currently modeling; he notes that the leading TV brands include Samsung, Sony and LG. (Of course, both Samsung and LG are Korean.) “As we’ve learned over the last few quarters, Korean manufacturers will trim Taiwanese orders rapidly as demand drops,” he writes.  ... (link)