Corning, AU Optronics: shares slide on Oppenheimer downgrades

Shares in Corning Inc. the world“s largest LCD glass maker, and rival AU Optronics fell after a downgrade by Oppenheimer on concerns that consumer demand will slow in the coming months.
Analyst Yair…

Shares in Corning Inc. the world“s largest LCD glass maker, and rival AU Optronics fell after a downgrade by Oppenheimer on concerns that consumer demand will slow in the coming months. Analyst Yair Reiner dropped Corning to “perform” from “outperform” and cut AU Optronics (AU)) to “underperform” from “perform”. Mr. Reiner said checks indicate that demand for LCD panels is likely to decline in the next few months after rising for the past nine months. Therefore, 1Q 2010 panel shipments might mark the peak, with demand tapering off in 2Q. Declining shipments and the loosening of supply-demand typically lead to sharp declines in panel pricing and profitability, the analyst said.