Passage Research downgraded Corning's stock (GLW) to "Sell" from "Buy" in a Seeking Alpha report. This downgrade occurred despite Corning's strong ties to the artificial intelligence boom. The company also maintains partnerships with Meta and Nvidia.
The primary driver for the negative revision is the stock's "onerous" valuation. Corning's stock surged 112% year-to-date. The analyst argues this valuation is unsustainable. The stock trades at over 68 times forward earnings. This occurs despite robust growth in its optical communications segment and solid quarterly results. Profitability improvements cannot justify the expanded valuation.