Bigger TVs equal bigger profits for Corning: Citi

A shopper looks at televisions in a Best Buy store.
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Investors should buy Corning as consumers purchase bigger and bigger TVs which are more profitable for the LCD glassmaker than smaller panels, according to Citi Research.

"We believe sentiment in display has turned too bearish into a seasonally stronger second half, and note that screen size matters more than LCD TV unit volume," Citi Research's Stanley Kovler wrote in a note to clients Monday.

He added, "TV screen size is still growing, coupled with 4K TV adoption potentially driving upgrades or incremental purchases. Beyond the greater affordability of larger screen TVs, 4K remains a driver for larger TV screens as the benefits are only evident at larger screen sizes."