Corning Inc. (NYSE:GLW) shares rose nearly 2% in premarket trading after UBS upgraded the stock from Neutral to Buy and lifted its price target to $84 from $65.
UBS said accelerating demand for fiber in AI-driven data centers was likely to exceed market expectations and support a re-rating in the stock. Analysts expected Corning’s optical segment to deliver a roughly 27% sales CAGR through 2027, with sales for that year projected 18% above consensus.
Overall, UBS forecast Corning’s total sales CAGR of about 13% through 2027. Adjusted EPS was projected to grow 24% in 2026 and 20% in 2027, both ahead of Street expectations. The analysts now expected a sustainable 20% EPS CAGR through 2029, compared with mid-single-digit growth historically.
UBS said structurally higher growth rates would support multiple expansion, making the stock a compounder as earnings continued to rise.
