Corning Incorporated
Thesis
Corning is expected to achieve a multiple in the high teens due to a continued ROIC inflection driven by cash returns and the ability to grow sales without significant capex. The market is overlooking growth opportunities in optical networking and Gorilla Glass, which could significantly boost revenues as demand for optical fiber increases and the auto glass market adopts innovative solutions.
Did it work?
The stock pitch for Corning has significantly outperformed expectations, with a price increase of 495.4% over 112 months. The thesis regarding growth opportunities in optical networking and Gorilla Glass appears to have played out, as the company has successfully capitalized on these markets, leading to a substantial increase in its valuation. The anticipated ROIC inflection and cash returns have likely contributed to this impressive performance.
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