Market Overview

UPDATE: Tigress Downgrades Motorola On Declining Performance

Related MSI
Motorola Shares Continue To Climb After Large Block Trade, Up ~1.5%
Apple Inc. Ranked As Most Widely Used Smartphone In July, Facebook Inc Has Top Smartphone App

In a report published Friday, Tigress Financial analyst Ivan Feinseth downgraded Motorola Solutions (NYSE: MSI) from Buy to Neutral on the company's declining business performance and revenue trend.

Feinseth noted that the phasing out of the iDEN network and government sale will continue to weaken business performance and place pressure on operating margins. The analyst added that Sprint's phase out of the iDEN network is expected to take three to four years.

Although the firm expects Motorola to regain market share in the government communication industry from securing the Zebra and other deals, near-term pressure will weigh on shares. The government business, which currently makes up 67 percent of sales, is expected to decrease by 10 percent in the second quarter of 2014 and low to mid-single digits by the year end.

Tigress expects Motorola to increase its dividend and share repurchase program. The analyst added that new product innovations could benefit the company.

Shares of Motorola closed Friday at $66.00, down 0.68 percent.

Latest Ratings for MSI

DateFirmActionFromTo
Aug 2014Credit SuisseMaintainsOutperform
May 2014Mizuho SecuritiesDowngradesNeutralUnderperform
May 2014NomuraMaintainsNeutral

View More Analyst Ratings for MSI
View the Latest Analyst Ratings

Posted-In: Ivan Feinseth Tigress FinancialAnalyst Color Downgrades Analyst Ratings

 

Related Articles (S + MSI)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters