Corning = The Market

From a major Wall Street research firm this morning:

"We are reducing our rating on the shares of Corning from Neutral to Underperform following the recent 24% rally in the shares. There is no change to our $9 price objective and below consensus 2009 EPS estimates ($0.75 vs. $0.94), which we now think on the heels of our visit last week to CES could even prove aggressive largely due to the lack of major demand impetus."

Corning is the market share leader in making glass for flat panel displays and TV's. The shares rallied from $7.88 November 20 to $11.55 January 6, a gain of 46%. Demand is soft, not likely to recover soon and 09 estimates are probably too high. The TV cycle, a large driver for tech in 07/08 is over. A prefect recipe for lower stock prices.

It still may be that the November lows were too low, but only time will tell.