GLW: Display and Connectivity Demand Will Drive Strong Performance Through 2027

Corning's analyst price target has seen a significant increase, with most estimates now ranging from $82 to $100 as analysts anticipate sustained revenue growth driven by strength in the Display, Specialty Materials, and Optical segments. This growth is further supported by ongoing expansion in Polysilicon and Fiber.

Analyst Commentary

Corning has recently attracted significant attention from Wall Street, with a wave of rising price targets reflecting increased analyst confidence in the company's growth prospects. Analysts are focused on both ongoing strengths and potential challenges as they assess Corning's performance and outlook.

Bullish Takeaways

• Bullish analysts are optimistic about continued top-line growth, particularly driven by robust performance in the Display, Specialty Materials, and Optical segments.
• Upward revisions in price targets cite the company's ability to leverage strong demand in fiber and polysilicon. This demand is expected to extend Corning's growth trajectory into 2027.
• There is increasing confidence that rising hyperscaler investments and artificial intelligence adoption will drive further demand for connectivity solutions and optical fiber, supporting long-term margin expansion.
• Structural shifts such as the transition from copper to fiber in data centers and improved supply chain stability are viewed as catalysts that could support a higher valuation and sustained EPS growth through the decade.

Bearish Takeaways

• Some analysts remain cautious about the pacing of growth within the Optical segment. They note that recent outperformance stemmed primarily from other segments, and any supply disruptions could limit upside.
• There are concerns that volatility in petrochemical markets and lower U.S. natural gas-based cost advantages could dampen margins in specialty categories over the near term.
• Questions linger regarding execution risk as Corning ramps up its Solar and Optical businesses, especially if supply chain issues recur or market demand softens unexpectedly.
• Valuation remains a debate, with some seeing the current multiple as justified by near-term Display and Specialty Materials strength. Others caution that growth in other segments must materialize to sustain higher price targets.

What's in the News

• Corning and Ensurge Micropower ASA have entered into a joint development agreement to co-develop solid-state microbatteries, integrating Corning's ribbon ceramic technology with Ensurge's microbattery platform. Corning will invest in Ensurge, with options to increase its stake via warrants. (Key Developments)
• The company completed an additional share repurchase from July to September 2025, acquiring 373,972 shares for $25.05 million and bringing total repurchased shares under the program to over 48.5 million (6.12% of shares outstanding) for $2.025 billion. (Key Developments)
• Corning announced an exclusive collaboration with All Weather Group to introduce thin quadruple-pane window units using Corning Enlighten Glass to the Canadian market, aiming to set new energy efficiency standards. (Key Developments)
• The company provided Q4 2025 earnings guidance, expecting core sales of approximately $4.35 billion, with core EPS forecasted to grow to a range of $0.68 to $0.72. (Key Developments)
• Corning entered into strategic agreements with both QuantumScape Corporation for joint development of ceramic separator manufacturing for solid-state batteries, and GlobalFoundries to create innovative detachable fiber connector solutions for advanced data centers. (Key Developments)

Valuation Changes

• The Fair Value estimate remains unchanged at $92.75, signaling consensus stability regarding intrinsic valuation.
• The Discount Rate has risen slightly from 8.57% to 8.73%, reflecting a modest increase in perceived risk or required return.
• Revenue Growth projections have increased marginally, moving from 13.83% to 13.91%.
• The Net Profit Margin estimate has edged down from 14.79% to 14.76%, indicating a slight expected contraction in profitability.
• The Future P/E multiple has climbed significantly from 24.77x to 31.51x, suggesting a higher forward valuation and market optimism about future earnings.