Upgrade of Corning shares by Deutsche Bank; Experts Expect Margins to Grow

Corning, the glass manufacturer, received an upgrade from Deutsche Bank analyst, Matthew Niknam. The company’s stocks have been upgraded from “hold” to “buy,” while the price target has increased from $35 to $38. This implies a potential gain of 15.7% from where it closed on the previous Friday.

What is Driving the Upgrade?

Niknam believes that Corning is turning a corner, thanks to higher margin business units such as display seeing better quarter-over-quarter growth, price increases in businesses like optical, and easing supply chain challenges. Niknam expects Corning to earn 40 cents per share in the first quarter of 2023, which will then grow to 47 cents per share by the second quarter. Quarterly earnings are expected to rise to 59 cents per share by the end of 2023.

Boosted by China’s Reopening

With China reopening and contributing nearly 30% of Corning’s revenue, it is expected that this will help boost profits further.

Risks Ahead

Although Niknam has made these predictions, there are still some estimate risks to published consensus, especially with recent weeks being choppy.

Caution Raised on European Banking Sector

However, while things look positive for Corning, Morgan Stanley is warning about the European banking sector. They suggest that the cyclical window for European banks has closed and recommend that investors reduce their exposure to this sector.

Problems for Deutsche Bank

Deutsche Bank shares have fallen as concerns about the stability of European banks have persisted. Morgan Stanley’s report highlights that history repeats itself and every rate hiking cycle over the past 70 years has ended in a recession or financial crisis. The current turmoil isn’t proving any different.

The Shift in Perspective

Previously, European equities were expected to outperform due to a potential U.S. economic slowdown or a Fed induced sell-off in the S&P 500. However, the problems of the banking sector have shifted this perspective.

Disc Medicine’s Treatments for Blood Disorders on The Rise

Meanwhile, Disc Medicine is receiving praise for its promising development of bitopertin to treat erythropoietic porphyrias and other blood disorders. BMO Capital Markets has even rated the company with an outperform rating and a $40 price target.

Disc Medicine’s Upside Potential

Currently trading under the ticker symbol “IRON,” Disc Medicine shares are up 8% this year and may have even more upside, with analysts suggesting that their $40 price target indicates a potential 84% jump from Wednesday’s closing price.

Other Promising Treatments

This Massachusetts-based biopharmaceutical company is also making progress with other promising treatments like DISC0974, which can treat anemia of inflation in addition to being used for myelofibrosis-related anemia and chronic kidney disease.

A Light at the End of The Tunnel

With COVID-19 still ravaging the world and making things difficult for many businesses, it’s good to hear some positive news. Disc Medicine’s successes are giving people hope that there are always ways to keep moving forward, no matter how difficult things may seem.

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