Truist's analyst Matthew Niknam believes Corning, a manufacturer of optical sensors, is now a compelling investment opportunity after a significant drop in its stock price, which has fallen 46% since late June. The bank has upgraded its rating from hold to buy, although it has reduced its price target from $205 to $175, indicating a potential upside of 27% based on Friday's closing price.
Niknam points to expected accelerating revenue growth, particularly in the Optical and Solar segments, projecting an 18% compound annual growth rate (CAGR) from 2026 to 2028. He also anticipates improvements in operating margins and return on invested capital through 2030.
Following the upgrade, Corning's shares rose over 1%, and the majority of analysts covering the stock remain optimistic, with 12 out of 17 rating it a buy or strong buy, and an average price target suggesting a 43% upside