Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

S&P Says Hold Motorola


Motorola (MOT): Reiterates 3 STARS (hold)

Analyst: Kenneth Leon

S&P thinks Motorola is on the right track, although execution on camera handsets and more competition in the CDMA market from Nokia may hamper sales in the fourth quarter. At an investor meeting, Motorola cited outsourcing delays with its camera phones, which are being fixed, and says it will expand outsourcing from one to three firms in 2004. Management does not expect to lose future orders beyond the fourth quarter for its camera phones. While it gained total share in the third quarter, Motorola stated it may lose share in the CDMA handset market to Nokia. Shares are trading below peers at 1.2 times S&P's 2004 sales estimate.

Freddie Mac (FRE): Reiterates 2 STARS (avoid)

Analyst: Erik Eisenstein

Freddie Mac named Richard F. Syron as chairman and CEO. Syron, the executive chairman of Thermo Electron Corp., is also a former chairman and CEO of the American Stock Exchange, with experience at the Treasury Department, the Federal Reserve, and the Federal Home Loan Bank system. S&P views Syron as qualified to deal with Freddie Mac's financial and political challenges and is pleased with the appointment, though not surprised that Freddie Mac looked outside its ranks for leadership. Still, from a corporate governance viewpoint, S&P is disappointed to see the reunification of the CEO and chairman positions.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus