JP Morgan Reiterates Underweight on Corning
JP Morgan remains rated Underweight on Corning (NYSE: GLW) as the company announced the acquisition of Life Sciences rival BD Discover Labware unit for $730 million in cash.
JP Morgan comments, "Corning announced its intent to acquire a majority of BD Discovery Labware unit for $730m in cash. At 3.1x sales the deal looks expensive to us but should allow Corning to easily achieve their $1bn 2014 revenue target for Life Sciences. The acquisition is expected to be slightly accretive in 2013. We continue to be concerned mainly with Corning's exposure to the shaky TV glass business for which pricing has continued to decline faster than expected."
GLW closed at $13.48 a share yesterday.
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