Morgan Stanley: Corning earnings forecast raised, target price cut to $155

TechFlow news,According to Chaoxiang Research, a Morgan Stanley research report dated October 28, 2026 said that Corning's Q3 optical communications revenue rose 44% year over year to $2.38 billion, with enterprise business revenue up 84% year over year.

Morgan Stanley believes new capacity deliveries are in line with the market's elevated expectations, and further valuation expansion needs support from margin improvement. The report maintains an 'Equal Weight' rating, cuts the target price from $165 to $155, and raises the 2027 core EPS forecast from $4.21 to $4.37. Solar ramp-up costs, elevated variable compensation, and weak consumer demand continue to limit near-term earnings flexibility. Catalysts are more likely to materialize in 2027, with optical connectivity demand ramping and cost pressures easing; intra-cluster scale-up interconnect demand is more likely to become a catalyst in the second half.

Source: TechFlow