Motorola Stock Rated At $10.50 (Buy/High Risk) (MOT, HUTC, NOK, AAPL, ERIC)

The analysts Jim Suva and Kevin J Dennean of Citigroup have recommended a buy strategy for Motorola Inc (NYSE: MOT) and have kept its target price at $10.50. This is because Motorola is launching the Android Smartphone at the Consumer Electronic Show (CES). Additionally, it plans to launch more than 20 new phones in 2Q10 using Android. Along with this, Motorola also plans to increase operational efficiency by cutting costs, and spin out a Mobile Devices business so that it can achieve greater profitability.

The telecom industry is also expected to go into positive capex spending in 2010. The potential problems faced by the company during the spin out are current competition faced from market players like HTC (NASDAQ: HUTC), Nokia (NYSE: NOK), Samsung, Apple (NASDAQ: AAPL), Sony Ericsson (NASDAQ: ERIC), Research in Motion (NASDAQ: RIMM) and many others, cable and mobile infrastructure bottlenecks preventing growth, and the general macroeconomic environment affected by government policies for the telecom sector as a whole which, make this investment a risky one.