Corning’s First Quarter Sets Up Clear View Into a Positive 2021; Raising FVE to $38

Corning beat the top end of its guidance ranges on both the top and bottom lines in its first quarter and guided to a strong second quarter. We’re raising our fair value estimate to $38 per share from $35, as we include stronger 2021 sales into our forecast. Corning’s outperformance in the quarter was broad-based, reflecting its ability to leverage centralized investments across a wide variety of end markets, a key tenet of our narrow economic moat rating for the firm. Despite our rosier outlook for 2021, we recommend waiting for a greater margin of safety before investing.