UPDATE: Citigroup Assumes Coverage on Corning on Flat Growth Market

In a report published Wednesday, Citigroup analyst Ehud Gelblum assumed coverage on Corning (NYSE: GLW) with a Neutral rating, but lowered the price target from $17.50 to $17.00.

In the report, Citigroup noted, “We are assuming coverage of Corning with a Neutral rating and a $17 price target. With likely continuous mid-single digit y/y declines in core Display revenue over the next 5 years (pro forma for the consolidation of SCP in early 2014), and lack of margin expansion opportunity, we believe EPS growth can primarily only come from below the line actions (buy-backs, tax rate management) negating the positive trends in the other businesses as, including SCP, Display generates over 80% of earnings, making GLW inextricably linked to the pulse of the TV market.”

Corning closed on Tuesday at $17.26.