- Yesterday afternoon, Corning (NYSE:GLW) announced it would acquire Alliance Fiber Optic Products (NASDAQ:AFOP), a provider of high-speed passive optical components, for $18.50/share (a 20% premium).
- Deutsche Bank is positive on the deal, citing the following benefits:
- Increased product breadth and market-reach in the web 2.0 and cloud scale datacenter market.
- Increased presence in developing and emerging Asia.
- Cost synergies.
- 3% incremental revenue growth.
- Firm raises price target to $23 from $21. Implied upside 11%. Maintains Buy rating.
- Street high for GLW is $30 (Argus). Street low is $15.75 (Drexel).
- Now read Why Corning Is On Its Way To $25/Share »