UBS Warburg Upgrades Corning to 'Buy'

Analyst Nikos Theodosopoulos sees growing appreciation of the strength of the company's LCD glass business

UBS Warburg upgraded Corning (GLW ) to buy from neutral.

Analyst Nikos Theodosopoulos says his upgrade reflects his growing appreciation of the strength of the company's liquid crystal display (LCD) business. He raised his $506 million 2003 LCD revenue estimate to $547 million, and raised the $617 million 2004 estimate to $712 million, reflecting 35% and 30% growth, respectively.

Theodosopoulos maintains his estimates for other businesses, and continues to expect Corning to break even in the third quarter of 2003. He thinks market fundamentals are stabilizing for the fiber business. He also thinks fiber inventories at regional bells have fallen to close to their maintenance levels. He upped the breakeven 2003 estimate to one cent earnings per share, and upped the 18 cents 2004 earnings per share to 20 cents. He also hiked the $5.60 target to $7.

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