Motorola Mobility: Time To Take Profits?
Jan. 10 2011 - 2:54 pm | 1,622 views | 0 recommendations | 1 comment
By ERIC SAVITZ
Motorola Mobility (MMI), the newly independent handset company, has had quite an impressive debut: the stock rallied 19% from the first day’s close as a separate stock on December 21 through Friday’s close.
And now it might be time to take profits.
Morgan Keegan analyst Tavis McCourt this morning reduced his rating on the shares to Market Perform form Outperform, noting that the stock has hit his $33 target price, which he set just last week.
” The shares appreciated following the separation from MOT and into the CES show where MMI announced 3 new smartphones and a tablet,” he writes in a research note. “Although we were very impressed by the Atrix smartphone for AT&T, we were disappointed in not seeing a fully functioning tablet, and at the extremely competitive environment for 4G smartphones at Verizon beginning in Q2. We suspect little earnings risk from any iPhone launch at Verizon as management has already baked this into their Q1 guidance. However, there are a lot of variables that are hard to predict for MMI in the next 6 months, including multiple new product, technology and category launches aside from the new dynamic at Verizon.”
MMI today is off 93 cents, or 2.8%, to $32.13. |
