Ticonderoga Securities analyst Brian White this morning dropped his rating on Corning (GLW) to Neutral from Buy after a trip to Taipei to visit LCD panel makers and other companies in the tech supply chain.
“Further panel price declines, evidence of order rate cuts, sluggish demand trends and a less constrained glass market has provided us with incremental concerns surrounding Corning,” he writes in a research note. “Our meetings with panel makers and buyers of LCD panels over the last couple of days have brought to the surface evidence of further price declines in May, while June has the potential for more downside.”
White says some customers have cut panel orders due to the “challenges” in the European market.
The analyst adds that his meetings turned up greater LCD glass availability than on his last trip in April. “Our checks indicate that Corning has been more aggressive in trying to sell its LCD glass to certain panel makers, which we believe speaks to a less constrained supply environment and incremental demand weakness,” he writes.
GLW this morning is down 39 cents, or 2.2%, to $17.04.
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