Jefferies Raises Price Target on Motorola Mobility (MMI), Experiencing Strong Demand Outside U.S.
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Price: $39.98 --0%
Rating Summary:
4 Buy, 25 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
4 Buy, 25 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade MMI Now!
Jefferies is maintaining its Hold rating on shares of Motorola Mobility Holdings (NYSE: MMI), but is raising its price target by $1 to $27 as the company raises its build plans for the first time in four months.
The firm reports that it checks indicate MMI is experiencing strong sales outside the U.S. which are really contributing to the company's growth, specifically with strong demand coming from China and Latam. Demand in the U.S. is back on the rise with Google's (Nasdaq: GOOG) Android operating system showing strong demand. Sprint's (NYSE: S) new Motorola Photon is also hitting the market with some solid sales, but could be better.
Jefferies is raising its total smartphone estimate from 3 million to 4.3 million while lowering its ASP estimate from flat to a loss of 5 percent quarter-over-quarter.
The firm believes that ASP pressure from Nokia's (NYSE: NOK) and Research in Motion (Nasdaq: RIMM), as well as from Huawei and ZTE will drive new Android devices in the $100 to $200 range. Its current Q2 EPS and revenue estimates are $0.08 and $3.3 billion.
Management notes that while Q3 is not expected to see any large shipments or surprises, Q4 should show strong demand due to a ramp up in Europe.
Jefferies comments that in the long MMI will need to come up with something to differentiate themselves from its competitors that also use the Android system in their devices. Creating its own operating system is an option but will cause a large spike in opex and may be a risky endeavor.
Jefferies is raising its FY11 and FY12 EPS estimates from ($0.07) and $0.86 to $0.26 and $0.97. The firm also raised its FY11 and FY12 revenue estimates from $13.22 billion and $15.43 billion to $13.55 billion and $15.58 billion.
For more ratings news on Motorola Mobility Holdings click here and for the rating history of Motorola Mobility Holdings click here.
Shares of Motorola Mobility Holdings closed at $23.28 yesterday, with a 52 week range of $22.56-$36.54.
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The firm reports that it checks indicate MMI is experiencing strong sales outside the U.S. which are really contributing to the company's growth, specifically with strong demand coming from China and Latam. Demand in the U.S. is back on the rise with Google's (Nasdaq: GOOG) Android operating system showing strong demand. Sprint's (NYSE: S) new Motorola Photon is also hitting the market with some solid sales, but could be better.
Jefferies is raising its total smartphone estimate from 3 million to 4.3 million while lowering its ASP estimate from flat to a loss of 5 percent quarter-over-quarter.
The firm believes that ASP pressure from Nokia's (NYSE: NOK) and Research in Motion (Nasdaq: RIMM), as well as from Huawei and ZTE will drive new Android devices in the $100 to $200 range. Its current Q2 EPS and revenue estimates are $0.08 and $3.3 billion.
Management notes that while Q3 is not expected to see any large shipments or surprises, Q4 should show strong demand due to a ramp up in Europe.
Jefferies comments that in the long MMI will need to come up with something to differentiate themselves from its competitors that also use the Android system in their devices. Creating its own operating system is an option but will cause a large spike in opex and may be a risky endeavor.
Jefferies is raising its FY11 and FY12 EPS estimates from ($0.07) and $0.86 to $0.26 and $0.97. The firm also raised its FY11 and FY12 revenue estimates from $13.22 billion and $15.43 billion to $13.55 billion and $15.58 billion.
For more ratings news on Motorola Mobility Holdings click here and for the rating history of Motorola Mobility Holdings click here.
Shares of Motorola Mobility Holdings closed at $23.28 yesterday, with a 52 week range of $22.56-$36.54.
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