Motorola: Have Losses Bottomed Out?

Motorola (MOT) shares have been goosed this morning by Credit Suisse analyst Kulkinder Garcha , who upped his rating on the stock to Neutral from Underperform.  His price target on the stock is $4.50. Garcha writes that, following meetings with management at the Mobile World Congress in Barcelona, he is raising his 2010 EPS estimate to 37 cents from 28 cents, “given increased confidence in management’s focus on spending reductions.” He says the upgrades reflects his view that “losses have bottomed” in Motorola’s mobile devices business. The Street consensus EPS estimate for 2010 is 20 cents. This is not to say he is wildely bullish. He notes that the company’s planned Android-based phones won’t ship until Q4, and that the dearth of new products will meanwhile be compounded by a declining handset market. He thinks the company’s global market share will continue to drift lower. But he also thinks that operating losses in devices will fall ... (link)