Monday, April 03, 2006

Motorola Has Strong Near-Term Product Momentum reports that Piper Jaffray analyst T. Michael Walkley has "raised estimates for Motorola based on strong first-quarter 2006 handset trends in North America, China and Europe, especially for the RAZR and SLVR phones." In a recent research note, Walkley wrote, "We continue to believe Motorola is well-positioned to maintain or even improve its strong North America market share near term."

According to Walkley's North American checks, "Motorola's GSM phones continued strong sell-through trends in March, with continued strong demand for the RAZR following Cingular's price cut." Walkley also said "demand remained strong for the SLVR phone at Cingular, and the recent price cut of the PEBL phone at T-Mobile led to improving sell-through trends. He expects Motorola's new Q-phone to have a successful launch at Verizon Wireless stores within the next couple of weeks."

Walkley added, "We believe Motorola remains a solid No. 2 player in the global handset market and has strong near-term product momentum. However, given the current share price, we maintain our Market Perform rating."