Corning (NYSE:GLW), LG Display (NYSE:LPL) Nothing to Get Excited About Says Ticonderoga

Citing a muted LCD panel market, especially in the U.S., Ticonderoga says they have a hard time getting excited about companies like Corning (NYSE:GLW) and LG Display (NYSE:LPL), which they have a "Sell" rating on both.

Ticonderoga said, "Sales in November Poised to Rise After a Dismal October. During our meetings in Taipei, we sensed November volumes in the LCD panel market likely improved versus October for IT panels as customers took advantage of prices that were still below cash cost for certain sizes. Also, LCD TV panel production began in November for the Chinese New Year and will continue into December but the U.S. market remains muted. Essentially, we are hearing more constructive trends around the IT market due inventory restocking, while the enthusiasm around the LCD TV market is more muted given the weakness in the US. Netting this all out, we would not be surprised if November sales from the LCD panel makers rise by 5-10% versus the historical decline of 10%. Recall, Taiwan panel sales fell by 13% M/M in October versus historical declines of 4%. At the same time, we are hearing that this strategic buying is likely to take away from future purchases as end market demand remains muted. We still find it difficult to get excited about the LCD world, including Corning and LG Display.

"PC Monitor Pricing Rose Again in November, LCD TV Fell. Regarding LCD panel pricing, PC monitor panel prices continued to rise in November (we estimate up $1-2 M/M) but certain sizes are still below cash cost.

"Consumer Notebooks Still in a Tough Spot. Regarding consumer notebook end market demand, the commentary was a bit worse versus previous thoughts in October as the U.S. market has deteriorated."

LG Display closed Thursday at $17.98, gaining $0.44, or 2.51 percent. Corning was at $18.72, up $0.68, or 3.77 percent.