Nomura Securities Maintains a 'Neutral' on Motorola Mobility (MMI); Strong 1Q Results

Nomura Securities maintains a 'Neutral' on Motorola Mobility Holdings (NYSE: MMI), PT increased from $23.70 to $24.50.

Nomura analyst, Stuart Jeffrey, said, "Reported strong 1Q results, driven by a strong home division, slightly higher-than-expected tablet sales and relatively robust smartphone ASPs. In terms of MMI’s smartphone performance, N.A. smartphone sales grew by just over 10% year on year, which compares poorly to market growth of around 50%. The good news in Q1 was that international sales were better than expected. However, sales and marketing expenses were higher, too. Until MMI builds greater scale, we see little margin upside beyond 5%, limiting fair value to the mid-20s even after treating 70% of cash as excess. Unless management changes strategy, we see limited upside to the stock. Increase 2012/13 EPS estimates to $1.57/$1.92 from $1.48/$1.77."

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 $23.99 yesterday.

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