Corning's (GLW) Optical business is expected to drive revenue and EPS at or above guidance in Q2, keeping the stronger H2 setup intact, BofA Securities said in a note Monday.

The note said a major part of the recent bullishness on Corning has focused on the solid outlook for its Optical segment, which is benefiting from AI buildout narratives.

"The main focus in Optical is whether F2Q improves confidence that GLW is in the early innings of a longer optical build cycle across both enterprise and carrier," the report said.

The note also pointed to Corning making progress in advanced packaging of semiconductor chips, with new technologies likely to support the company's longer-term valuation.

The report noted that its solar division is still its main near-term offset, with the wafer transition pressuring margins before the drag eases in H2. Corning plans to report Q2 results on July 28.

BofA reiterated its buy rating and lifted its price target to $243 from $223.

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