Corning Seen More Likely to Achieve Higher Sales Growth Over Long Term, UBS Says

-- Corning's (GLW) is seen more likely to achieve higher sales growth and profit margin gains with a stronger long-term growth outlook, UBS said in a Tuesday note.

Investor expectations on pricing and margins may have gotten too high, which led to the company's recent stock decline of 9%, UBS analysts said.

The company's Q2 guidance matched UBS's expectations, excluding solar maintenance impacts, and the analysts said they boosted their estimated 2027 and 2029 sales based on their higher conviction for growth. Profit margins continue to rise as the company posts 40% to 50% incremental margins in its optical segment, although there may be some short-term volatility as capacity comes online, according to the note.

Over the next three years, the analysts project compound annual growth rate of 17% for sales and 32% for EPS. Their updated 2028 estimates include around $26 billion for sales and $5.80 for EPS.

UBS maintained the company's stock rating at buy and raised the price target to $179 from $171.

Price: $149.59, Change: $-3.46, Percent Change: -2.26%

Research Alert: CFRA Downgrades Rating To Sell From Hold On Shares Of Essex Property Trust, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our target by $15 to $250 using a narrower equity risk premium and a forward P/FFO of 15.5x, which is in line with the multifamily residential REIT average. We keep our 2026 FFO estimate at $16.15 and lower 2027's by $0.05 to $16.45 on respective revenue projections of $1.94B and $1.98B. Rental revenue is not yet rebounding to historical growth levels. Across the industry, we are seeing inflation in key operating expenses exceeding revenue growth, and this leads to modest gains in cash NOI growth Y/Y. We expect these market conditions to continue as pricing power for ESS and its peers seems to have eased. In particular, ESS has a West Coast portfolio profile that is exposed to significant job layoffs in the technology sector. In our opinion, we have not yet seen the tail risk of major announcements just released in recent weeks. ESS has the challenge of complying with strict housing guidelines in California, leading to the trust historically underperforming peers in other parts of the country.

$ESS

Research Alert: CFRA Keeps Buy Rating On Shares Of Biogen Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our target at $236, 13.8x our new 2027 EPS view, a discount to BIIB's five-year historical forward P/E average of 14.1x. We lower our 2026 EPS view to $15.24 from $16.14 to adjust for the impact from acquired IPR&D. We keep our 2027 EPS view at $17.16. BIIB reported a strong start to 2026, with sales of $2.5B and adjusted EPS of $3.57. We see a successful stabilization of the business after years of decline, due to a 12% Y/Y increase in the growth products portfolio. In our view, during the analyst call, management presented a clear strategic vision centered on the pending $5.6B acquisition of Apellis, expected to close in Q2, which can transform BIIB into a growth company by adding two commercial assets, Syfovre and Empaveli. We think the Apellis deal could bridge a revenue gap until 2028, when the company's late-stage pipeline matures. Via this acquisition, BIIB also gains nephrology expertise and an established infrastructure, which could set its key asset Felzartamab launch for success.

$BIIB

Starbucks to Sustain Sales Momentum; to Focus on Margins in H2, UBS Says

Starbucks (SBUX) is expected to maintain solid sales momentum on its turnaround strategy, though investor focus is shifting toward margin recovery in H2, UBS said in a note on Wednesday.The brokerage said strong transaction-driven comparable sales growth in Q2 reflected improvements in operations, menu innovation and updated loyalty program.Looking ahead, UBS said continued execution on initiatives such as afternoon beverage platforms, loyalty enhancements, store closures and operational improvements should support sales into H2.UBS also expects margin expansion later in the year, supported by sales leverage, cost savings and easing pressures from tariffs and coffee costs.UBS raised the price target on the stock to $105 from $100 but maintained a neutral rating.Price: $106.10, Change: $+8.82, Percent Change: +9.06%

$SBUX

Related Articles

Research Alert: CFRA Downgrades Rating To Sell From Hold On Shares Of Essex Property Trust, Inc.

Research Alert: CFRA Keeps Buy Rating On Shares Of Biogen Inc.

Starbucks to Sustain Sales Momentum; to Focus on Margins in H2, UBS Says