BofA Securities increased its price target for Corning Inc. to $120.00 from $110.00 and reaffirmed a Buy recommendation after the glass and ceramics maker reported quarterly results that slightly outpaced revenue expectations.
The revenue beat was driven by stronger-than-expected performance in Corning's Display and Hemlock segments. Those gains were partially offset by a surprising shortfall in the Optical segment, which fell below what analysts had forecast.
Despite the near-term weakness in Optical revenues, BofA signaled continued confidence in Corning's medium-term prospects. The firm pointed to a 1-2 year growth opportunity tied to ongoing data center buildouts - highlighting a deal with META that was announced on Tuesday - and to a longer-term structural shift as copper is replaced by fiber inside data centers.
Analysts at BofA also noted that Corning has raised both its internal and risk-adjusted Springboard plan targets for 2026 and 2028. BofA expects those elevated targets could push consensus estimates higher, especially for 2028, and added that the company’s targets might still be conservative because certain opportunities have yet to be fully incorporated into forecasts.
The bank reiterated its Buy rating on the view that sustained data center growth should support structurally higher Optical revenues for Corning, while new market access platforms - including Solar - could contribute incremental operating profit.
Meta Platforms figures prominently in BofA’s thesis. The company disclosed a META deal tied to data center buildouts and is also committing to invest up to $6 billion in Corning’s fiber-optic cable technology to support its AI data center infrastructure, a move presented as part of Meta’s broader AI expansion strategy. Several financial metrics and analyst perspectives on META were cited alongside this development: Meta’s market capitalization of $1.69 trillion, an analyst consensus rating of 1.33, and a 9.79% return over the last week according to InvestingPro data.
Additional financial detail provided in coverage referenced Meta’s scale, including $189.46 billion in revenue and a gross profit margin of 82.01%, as context for the type of high-value customer driving demand for Corning’s Optical products.
The notes also recapped recent analyst activity around Meta: Wolfe Research maintained an Outperform rating with an $800 price target and an expectation of 21% year-over-year revenue growth in 2026; Bernstein SocGen Group reiterated an Outperform rating with a $870 price target while acknowledging a smaller AI footprint relative to some competitors; and KeyBanc Capital Markets adjusted its price target to $835 from $875 while keeping an Overweight rating and noting potential upside from AI product cycles in coming years. These varied analyst views underscore differing perspectives on META’s growth trajectory even as it invests in infrastructure tied to Corning.
The combination of Corning’s updated internal targets, a high-value strategic customer committing capital to its fiber-optic technology, and BofA’s outlook for structurally stronger Optical revenues and accretive profit from new platforms form the basis for the raised price target and maintained Buy recommendation.
Note: Some data referenced in the analysis was attributed to InvestingPro research and recent analyst reports cited above.