Jefferies analyst downgrades Corning stock over supply chain concernsSome market analysts are downgrading their rating of Corning stock this week from "buy" to "hold."

Corning, a producer of specialty glass and ceramics used in consumer electronics, has been rated as a buy by many stock analysts for months. However, some analysts are now concerned that a supply chain correction will soon drive down the price of the company's stock.

Jefferies analyst George Notter has reduced his target on the stock from $24 to $18.25. In his report, Notter writes that "based on anecdotes and conversations with industry contacts, we now believe there's too much inventory out there at the TV manufacturer and panel supplier levels."

Corning has acknowledged supply chain concerns, but Notter believes "the weight of the evidence shows a more significant inventory issue than Corning is suggesting."

But investors shouldn't be overly worried.

"We recognize that current supply chain issues are shorter term in nature," Notter continues in his report. "Moreover, our larger thesis on Corning still hasn't changed - based on our prior analysis of global TV penetration rates, we believe that the size and trajectory of the LCD TV market will ultimately be larger than investors expect."

In addition to LCD TVs, Corning also produces components for a number of other consumer electronics. Recently, the company's "Gorilla" glass was chosen by Samsung to be used in the touchscreens on its Galaxy S line of smartphones.
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