Checks Reflect Weak Legacy But Improved Android Business For Motorola (MOT)
Analysts at Broadpoint Amtech maintain their "buy" rating on Motorola Inc (NYSE: MOT), while reducing their estimates for the company. The target price for MOT is set to $10.
According to Broadpoint Amtech, “…checks suggest mixed progress for MOT's handsets with Android momentum offset by weaker legacy phones.” “We support MOT's decision to focus on Android, which represents the future… MOT has introduced 6 Android phones this quarter, bringing the total to 8. This includes 3 to China (2 of which shipped for Chinese New Year's), the Devour for VZ (not shipping yet), the CliqXT for T-Mobile, and the Backflip for AT&T Wireless. Our checks suggest T plans an aggressive promotion of the Backflip around the upcoming NCAA tournament. While we do not expect a "DROID" part 2, we are surprised and encouraged by the plans,” the analysts say.
Broadpoint Amtech believes that Motorola’s “non-handset business is tracking in-line. However, “Legacy business weaker than our forecast,” the analysts add.
Broadpoint Amtech reduced its EPS estimate for 2010 from $0.25 to $0.22.
