Corning: Weisel Downgrades; Cites Loss Of Pricing Power

Corning (GLW) shares are sharply lower today after Thomas Weisel Partners analyst Ajit Pai cut his rating on the stock to Market Weight from Overweight. He also cut his price target to $11 from $11.50. Pai said the more cautious view reflects both the “still deteriorating” global economy and “early signs of a loss in pricing power in the :LCD glass substrate market.” Pai writes that he’d be more constructive on the stock when glass substrate price declines return to a more stable trajectory, the company’s business re-accelerates and the stock’s valuation becomes more compelling. Pai cut his 2009 EPS estimate to 85 cents, from 95 cents; his revenue estimate for this year drops to $4.875 billion, from $5.55 billion. Corning today is down 79 cents, or 7.4%, to $9.91. (link)