Corning Stock Rises After Mizuho Upgrade Highlighting Growth Driven by Data Centers

Key Takeaways

Corning's ( GLW ) stock price rose Wednesday after an upgrade from Mizuho analysts, who said the recent pullback following last month's earnings report has created an "attractive entry point."

The analysts raised their rating to "outperform" from "neutral," and lifted their price target for the stock to $47 from $44, writing that they have seen "no overall slowdown in the company's business and growth programs."

The New York-based company manufactures a variety of specialized glass and ceramic products, from glass for smartphones and televisions to fiber optic cabling solutions for data centers, which have seen a surge in demand as investment in artificial intelligence (AI) has grown.

Corning Could Be Poised For Gains After Slip From July Rally

Corning shares surged to a three-year high last month after the company lifted its revenue and profit outlook on demand for its optical connectivity products. However, the stock regressed later as the company's second-quarter results and third-quarter projections fell short of estimates.

Mizuho analysts said they believe the recent decline in Corning's stock price had more to do with last month's market rotation than anything related to Corning's business model or sales. They wrote that an upcoming review of Corning's optical glass fiber business could boost Corning's stock as it highlights one of the company's strengths.

Corning shares closed 3.3% higher at $42.08 Wednesday and have gained over 38% since the start of the year.

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