Banc of America Upgrades Motorola
Banc of America upgraded Motorola (MOT ) to buy from neutral.
Analyst Tim Long says he believes Motorola will be a key beneficiary of the rising global handset market. He says checks indicate a better near-term outlook than recent public data points suggest. He believes good product introductions should help financial performance for the rest of 2005.
Long says the valuation appears attractive as the stock is trading below its historic average. He notes the company has almost $4 in cash and investment per share.
He raised his 87 cents 2005 EPS estimate to 93 cents, and 92 cents for 2006 to $1.03. He also raised his $18 price target price to $20, or 20 times his 2006 EPS estimate.