Motorola, Inc. (MOT)

While we maintain our Sell rating for Motorola (MOT - Analyst Report), we have adjusted our valuation target higher based on current market conditions. MOT is a leading manufacturer of mobile handsets, network infrastructure, and cable products.

Revenue in the last reported quarter was significantly below our estimates due to continued weakness of the mobile handset sales. We are not convinced that a turnaround will take place without a major restructuring initiative as the company is exposed to lingering economic headwinds, lower overall worldwide demand for its handsets, a lack of high-end competitive PDA wireless devices, and reduced visibility for near-term revenue improvement.

However, stringent cost control measures taken by the management and development of new smart-phone devices are some initial positive indicators that will be monitored for longer-term rating consideration.