Corning Stock Falls 40% Since June Peak; Morgan Stanley Eyes H2 Optical Capacity Expansion as Recovery Catalyst

GLW6.05%
According to Morgan Stanley, Corning (GLW) stock has declined approximately 40% from its late June high, with the investment bank identifying optical business capacity expansion in the second half of 2026 as a key catalyst for recovery. The firm expects Q2 earnings on July 28 to show revenue upside of no more than $50 million and EPS upside of $0.01-$0.02, with management guidance on H2 capacity ramp-up and margin improvement being more crucial to stock direction than Q2 results. Morgan Stanley noted optical business is currently supply-constrained with existing capacity nearly fully absorbed, requiring new product pricing or accelerated capacity release for meaningful earnings flexibility. The firm maintains an Equal-weight rating, viewing current valuations as more attractive after the correction.
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