It seems this analyst is seeing consolidation coming down the pike in the wireless handheld business. He says:
Motorola is "well-positioned to benefit" as the complexity of handset technology increases and research and development becomes more important. The trend will favor companies with sufficient scale to fund in-house R&D such as Motorola. "This will likely raise the bar for others in the industry and result in continued consolidation though more from 'natural selection' than mergers and acquisitions," the analyst said.
It seems that their inhouse R&D is doing a good job at least when it comes to innovative new products. The RAZR phone seems like a real must have gadget. Their design arm is really cutting edge as far as I can see. I just like how they are taking market share away from rivals. This guys raised targets seem quite doable too:
Um raised Motorola's 2006 earnings estimate to $1.31 per share from $1.26, and raised the 2007 estimate to $1.52 from $1.39, citing increased estimates for global handset-unit shipments and market-share gains made by Motorola. The analyst raised the global handset-unit-shipments estimate for 2006 to 881 million from 851 million, and raised the estimate for 2007 to 949 million from 903 million.
The analyst raised the price target on Motorola to $30 from $27, and reiterated a "buy" rating on the company.
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