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Corning up after upgrade cites rising LCD demand

Post Time:Oct 07,2009Classify:Company NewsView:440

Corning Inc. shares jumped Tuesday on improving estimates for liquid crystal display demand this year and next.

In a note to investors, UBS analyst Nikos Theodosopoulos upgraded the company, saying the bank's Asia analysts have raised their outlook for LCD demand by 10 percent for 2009 and 12 percent for 2010. The improved forecast is driven by expectations for strong holiday sales of LCD TVs in China, he said.

Theodosopoulos raised his rating on Corning, the world's largest producer of LCD glass, to "Buy" from "Neutral" and inched his price target up to $19 from $18.50.

The analyst said the LCD industry has "reached a level of maturation," unlikely to post breakout growth but also not likely to disappoint. He expects Corning to post earnings next year of $1.60 per share, up from a previous estimate of $1.58. Analysts polled by Thomson Reuters expect $1.49, on average.

Corning shares rose 77 cents, or 5.2 percent, to $15.58 in morning trading.

Source: GlassInChinaAuthor: shangyi

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