Morgan Stanley: Corning earnings forecast upgraded, target price cut to $155

S, according to TechFlow Research, a Morgan Stanley research report dated October 28, 2026 states that Corning's Q3 optical communications revenue grew 44% year-over-year to $2.38 billion, including enterprise business which rose 84% year-over-year.

Morgan Stanley notes that new capacity deliveries align with high market expectations, indicating that further valuation upside will require margin improvement. The report maintains an "Equal-weight" rating, cutting the price target from $165 to $155, while raising the 2027 core EPS forecast from $4.21 to $4.37. Solar startup costs, high variable compensation, and soft consumer demand continue to limit near-term earnings flexibility. Catalysts are more likely to materialize in 2027, with volume ramp-up in optical connections and easing cost pressures. Furthermore, expanded interconnect demand within clusters is more likely to provide a catalyst in the second half of the year.