Motorola: Opportunity In Lack Of LTE iPhone
By Tiernan Ray
January 11, 2011, 2:30 PM ET
blogs.barrons.com
Lawrence Harris with C.L. King & Associates offers some thoughts this afternoon about Motorola Mobility (MMI), which he rates a Strong Buy, with a $40 price target, in the wake of Apple (AAPL) and Verizon Communications’s (VZ) iPhone announcement this morning.
In particular, Harris zeros in on the fact the iPhone at Verizon will not take advantage of the 4G wireless, or Long Term Evolution (LTE) network that Verizon turned on in December. (In fact, it’s reasonable to speculate there’s no LTE iPhone imminent.)
He notes that Moto showed off the Droid Bionic for LTE on Verizon at last week’s consumer electronics show. Moto also showed off a tablet computer for Verizon, the Xoom, based on Google’s (GOOG) Android operating system, of which a 4G version is expected following an initial 3G introduction. Both devices are expected to arrive in the second quarter.
Harris concludes that despite Verizon’s need to bring the iPhone to its network, its strategy focuses on LTE, and that Moto’s position with Verizon should help it bounce back this year. He expects an operating loss in the first quarter because of the introduction of the iPhone at Verizon, however.
Motorola shares today are up 3 cents at $32.29. |
