CapWealth Executive Vice President and Chief Investment Strategist John Lueken was quoted in an article in Barron’s Magazine’s first edition of the new year, published on Jan. 1, titled “Corning: Through a Glass, Brightly.”
The article focused on the bright prospects of the glass and optical fiber maker, speaking to the new markets and products the company is embarking on, and included the insights of a few financial industry experts, including John.
While nearly all of the feedback on the company’s prospective value growth for the future was positive, John provided the most bullish opinion, deeming that Corning can earn $2.40 a share in 2019 and deserves more than the current 16 times 2019 estimate. His estimated price per earnings ratio of 17 puts Corning’s share value at $41, a 26% upside.
John provides further insight on Corning, not published in the article, below:
“Corning has been a CapWealth portfolio holding company for the past several years and is indicative of our investment process,” John said. “In our view, it was a misunderstood business that was addressing several strategic priorities, reinvesting to diversify their product offering, and streamlining their balance sheet through proactive capital return programs to shareholders. All the while, the company was operating in a secular growth sector headlined by the need for infrastructure investment to support rapidly increasing broadband use. The investment community is just beginning to realize the value proposition and unique competitive positioning of this well-run, shareholder-focused company.”
If you have a subscription to Barron’s online, you can read the full, original article here: