Motricity Announces Contract With Reliance Communications

Goldman Sachs has adjusted its pricing model on Motricity, Inc. MOTR following recent contract announcements and revenue reports. In the report, Goldman Sachs writes "We view the Reliance Communications RCOM contract positively as it provides better revenue visibility into 2011 and is consistent with MOTR's strategy to penetrate international clients (5% of revenue currently) where data services remain nascent and feature phones dominate the installed base. That said, following recent stock performance (+112% last 3 months vs. +7% for the S&P 500), current risk/reward appears to the downside as the RCOM contract appears fully priced, and expectations are clearly elevated into 3Q results." Goldman maintains its Neutral rating and has issued a new price target of $13. Motricity closed Friday at $17.00.