Morgan Stanley analysts upgraded shares of Corning (NYSE:GLW) to Overweight from Equal-Weight, raising the price target on the stock to $38 from $35 in a note to clients Friday.
The analysts told investors in a note that they believe the company's estimates and valuation are derisked.
"We are upgrading GLW to OW, as we now see opportunity for positive estimate revisions over the next twelve months, setting up an attractive risk-reward," they wrote.
"Exiting '22 and into '23, GLW has seen broad weakness across the portfolio as inventory digestion headwinds within the Optical business have coincided with weaker demand in the more consumer-exposed businesses (Display, Specialty Materials, Auto, and Life Sciences)," they added.
The analysts also believe that display pricing offers an opportunity for margin upside as we head into 2024.
"While we expect timing of price increase impact to be elongated, and ultimate net price realization remains up for debate, margins could begin to see some benefit next year," they stated.