Corning slashed at JPMorgan on tepid recovery: 4 big analyst cuts
Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Corning, Qorvo, Skyworks Solutions, and Juniper Networks.
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Corning (NYSE:GLW) shares fell nearly 2% pre-market today after JPMorgan slashed the specialty-glass and ceramics maker to Neutral from Overweight, and cut its price target to $36 from $43, as reported in real-time on InvestingPro.
The analysts say they now expect a more prolonged economic recovery than they initially did, and say this is expected to mute Corning earnings upside in the near to medium term.
“The direct consequence of a milder recovery is considerable downside to current consensus estimates that embed sequential earnings growth in 4Q23E, as well as downside to consensus expectations of +25% y/y EPS growth in 2024E,” wrote JPMorgan.
While still forecasting a 17% year-over-year earnings growth in 2024, driven by various profitability-enhancing actions, the analysts perceive that variability in the timing of revenue recovery across Corning's end markets will limit the opportunity to deliver the strong earnings growth indicated by the Wall Street consensus.
Shares were nearly breakeven in recent trading at $29.48.
Both Qorvo (NASDAQ:QRVO) and Skyworks Solutions (NASDAQ:SWKS) were downgraded to Sell from Neutral by Citi. For both smartphone chipmakers — each a major supplier to Apple (NASDAQ:AAPL) — Citi cited increased to their China operations after the Huawei Mate 60 phone launch, which it believes will likely use domestic RF/connectivity chips.
“While QRVO/SWKS China sales have already come down over the last 1+ year due to weak China smartphone
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