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's disappointing financial results for full-year 2008. <p> Motorola'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.
February 26, 2009 | Filed Under Stocks to Sell
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