11:15 AM EDT, 09/02/2025 (MT Newswires) -- Corning (GLW) remains positioned for growth as demand for fiber optics continues to exceed market expectations and glass manufacturing presents a sizable opportunity, UBS Securities said in a Tuesday note.

The firm said it expects the Optical segment to deliver about 27% in sales growth through 2027, supported by rising data center builds that require four to 16 times more fiber content as companies move towards next generation processors. UBS also pointed to potential further upside from co-packaged optics and new contracts to connect datacenters.

The brokerage added that optical profits, now about 40% of Corning, are set to become the company's main growth driver, overtaking the Display segment. UBS expects adjusted earnings per share to compound at roughly 20% annually through 2029, supporting a re-rating of the stock.

Beyond fiber, the firm noted opportunities in Corning's glass production for solar, life sciences, and automotive applications.

UBS upgraded the stock to buy from neutral and raised its price target to $84 from $65.

Shares of Corning were up 1.5% in recent trading.

Price: 68.00, Change: +0.97, Percent Change: +1.45