SAN FRANCISCO - Stocks of companies that make liquid-crystal-display glass used in flat-screen televisions and other devices fell Tuesday after an analyst downgraded shares of Corning Inc. and AU Optronics Corp., citing concerns that demand will decline in the coming months.
In a client note, Oppenheimer analyst Yair Reiner downgraded Corning shares to "Perform" from "Outperform" and removed a $21 price target, while lowering his rating of AU Optronics to "Underperform" from "Perform." Reiner said checks indicate that demand for LCD panels — which had risen in the last nine months — is likely to drop in the next few months.Therefore, first-quarter panel shipments might end up being the highest for the year, he said, and shipments will have to drop in the second quarter to levels that are closer to sales trends of products that incorporate them.
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