RBC Capital Markets analyst Mark Sue on Friday cut his price target for Motorola Mobility stock to $33 from his previous target of $38. Sue also lowered his first and second-quarter sales and revenue forecasts, citing increased competition and slow sales of Motorola’s XOOM tablet. Motorola anticipated a rough first quarter when it reported fourth-quarter and full-year 2010 earnings in January, but Sue now believes earlier estimates were still high. He notes increased competition from devices like the HTC ThunderBolt at key carrier partner Verizon Wireless in revising his first-quarter device sales estimate down to 9.2 million units from 9.9 million. Sue also shaved $100 million from his first-quarter revenue forecast, which now sits at $3 billion. In the second quarter, Sue now sees Motorola selling 10.5 million devices, which includes only 300,000 Motorola XOOM tablets — down from his earlier estimate of 400,000 XOOMs and 10.9 million total devices. Motorola anticipates a net loss of between $26 and $62 million in the first quarter of 2011.
RBC cuts Motorola forecast citing competition, poor XOOM sales
Updated Dec 19th, 2018 7:09PM EST
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