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Technology Stocks : Motorola (MOT) -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (2098)	4/24/2001 8:24:32 AM
From: JakeStraw	Respond to of 3436

Current Valuation Signals a Buy for Motorola thetelecommanalyst.com MOTOROLA (MOT): On April 9, analysts at Morgan Stanley upgraded the shares of the wireless communications-equipment company to Strong Buy from Outperform, based on valuation. However, the analysts note that the stock is volatile (so it has more than a 25% chance of moving up or down more than 25% in a month, in the firm's view). While the analysts believe there is no near-term good news for Motorola shares, they do think credit-crunch fears for the company are overblown. It still has $4 billion in credit lines available and expects asset sales of $2 billion within the next six months. The analysts think the stock has hit its floor, and they see upside in the $20 range, provided there is recovery in the semiconductor sector, which they forecast for the first quarter of 2002. More importantly, the analysts are quite convinced that Motorola is committed to improving its cash flow and better managing its working capital during the current downturn. The company's current restructuring efforts seem meaningful, which justifies an early investment in Motorola shares to take advantage of its likely turnaround. The analysts' discounted cash-flow analysis supports their $24 price target for the shares, while their sum-of-the-parts valuation suggests that Motorola is undervalued at current levels, with potential upside in the $30 range.