Motorola Inc. (MOT)

We downgrade our rating to Sell for Motorola Inc. (<a href=http://www.zacks.com/stock/quote/mot>MOT</a>), a leading manufacturer of mobile handsets, network infrastructure and cable products. This follows our assessment of overall economic conditions and further analysis of the mobile handset business following the company&#39;s disappointing financial results for full-year 2008. <p> Motorola&#39;s handset division continues to lose market share as it contends with soaring operating losses. Cell phone sales in the last reported quarter registered a drop of 53% year-over-year. Additionally, the company suspended future dividend payment to shareholders. <p> We are not convinced that valuation levels will improve over the next three to six months without a major restructuring initiative as the company faces 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.

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