Prysmian: JPM turns more cautious after Corning's profit warning

Yangtze Optical Fibre and Cable Joint Stock Co

18/09/2019 08:18

** JPMorgan updates its forecasts for Italian cable maker
Prysmian  PRY.MI  to include deteriorating telecom fundamentals
after a profit warning from U.S. peer Corning
 GLW.N  urn:newsml:reuters.com:*:nFWN2670KS
    ** Corning cut its guidance for optical communication, where
it competes with Prysmian's telecoms business, says the broker,
cutting its price target by 6% to 23.5 euros
    ** JPM now models 2.5% organic growth for the telecom
segment for 2019 compared with 8% in the first-half, implying a
decline of about 4% for H2
    ** The factors behind Corning's profit warning should affect
Prysmian too, the broker says, such as a further decrease in
major carriers' investments in cables and fiber-to-home projects
and enterprise customers' lower-than-expected spending 
    ** "The extent of the warning from Corning is greater than
the impact talked about by Prysmian which could be due to
different regional mix (Prysmian more Europe, Corning more US)
as well as customer exposure," JPM says

 ((silvia.recchimuzzi@tr.com))