Gorilla Glass a Reason to 'Buy' Corning?

By Jennifer Booton Markets FOXBusiness


Shares of Gorilla Glass maker Corning (GLW) climbed about 1% Monday morning after the telecom equipment maker was handed upgrades on the heels of two upbeat analyst notes.

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Barclays (BCS) lifted Corning to “overweight” from “equalweight,” while Morgan Stanley (MS) raised the maker of display technologies to “equalweight” from “underweight.”

Morgan Stanley raised its 2013 outlook on Corning’s Gorilla Glass sales to $1.37 billion, which would mark a 31% year-over-year improvement from the 2012 period as smartphone sizes creep higher and touch notebook sales improve. The extra-tough glass is used by Samsung for its popular suite of Galaxy devices. 

The brokerage calls it a "risk-reward view," noting: "Touch notebooks lift Gorilla demand in 2013, but the display business continues to shrink with a 2015 reset on the Yen hedges rolling off."

Corning last month upped its quarterly dividend by 11% and unveiled a $2 billion buyback program after posting stronger-than-expected first-quarter earnings despite slightly disappointing revenue.

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Corning CEO Wendell Weeks at the time said he believed the future for the maker of glass for flat-panel televisions “is very bright,” its results “improving.”

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Shares of the Corning, N.Y.-based company edged up about 1% in recent trade to $15.22 after touching an intraday 52-week high of $15.49 earlier in the session.

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