Corning (GLW) issued conservative topline growth guidance for segments other than Optical and Solar, while assuming moderation in Hyperscale capital expenditure over time, BofA Securities said in a note emailed Thursday.
The company raised Springboard Plan targets and extended the duration to 2030, the firm said. It now expects annualized sales of $27 billion under its high confidence plan and $30 billion under its internal plan by Q4 2028, according to the note.
Management maintained its operating margin target at 20% or higher, as capacity expansions are needed to support the forecasted topline growth, the firm said. BofA expects Corning to lift the operating margin target over time.
Given the higher revenue targets but unchanged operating margins, BofA forecasts earnings per share of $10.42 by calendar year 2030.
BofA maintained a buy rating on Corning and raised the price target to $223 from $186.
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