Color on UBS Upgrade of Motorola (MOT): Estimates Still Too Conservative

More color on UBS's earlier upgrade of Motorola (NYSE: MOT):

UBS upgrades Motorola from Neutral to Buy, also raising its price target from $7.50 to $11.50.

The firm believes that Street estimates on Motorola remain too conservative, even in light of consistent gains since March. UBS specifically calls analysts FY10 profit estimate for Motorola's mobile devices business as underestimated, saying the company is now relying more on higher margin smartphones. And with one more phone to be unveiled this year, and several more in early 2010, UBS believes the news flow at Motorola should be positive over the near-term.

UBS lifted its FY10 EPS estimate from $0.31 to $0.34, which compares to the Street estimate of $0.26.

Shares of Motorola are up about 1.5% to $8.81 on the back of the upgrade. UBS's new price target represents potential upside of about 30.5% from current levels.

You May Also Be Interested In

• enVVeno Medical (NVNO) files $100M mixed shelf
• Andersen closes secondary offering of 4.9M shares at $44 each