UPDATE: JP Morgan Upgrades Corning to Neutral; Negative Thesis Has Run Its Course

JP Morgan raises its rating on Corning GLW from Underweight to Sell but lowers its price target from $13.50 to $12. JP Morgan notes, "We are upgrading our rating on Corning to Neutral from Underweight as we believe our original negative pricing thesis from November 2011 has run its course. Recent increases in panel pricing, particularly for larger TV panels, should help with industry profitability, which we believe helps alleviate pressure on glass prices. In addition, we believe glass inventory levels are likely to be more stable after recent large reductions. Demand is still an issue given the weakening macro backdrop, but the shares are already trading on a P/TB multiple similar to the trough seen in the midst of the late 2008 credit crisis. As bad as things seem to be getting in the world, we believe Corning is now likely to trade more in line with the sector." GLW closed at $12.78 on Thursday.