MOTOROLA, the world's second- biggest mobile phone maker, has revamped its best-selling Razr handset as it tries to claw back market share from industry leader Nokia. Credit Suisse analyst Michael Ounjian sees potential for Motorola shares to rally to $24 from about $18.
The chart of the day compares the three-year stock performance of Illinois-based Motorola with Nokia's shares converted to dollars. Motorola shares have lost almost 20% of their value in the past six months, while shares of Finland-based Nokia have gained more than 26% in euros and 33% in the US currency.
Motorola unveiled the new Razr last week, with a better camera and more song storage capacity. Last month, the company announced its first quarterly sales decline in almost four years and its first loss in almost three years.
"Razr 2 (below) appears to be a significant improvement over the Razr in terms of quality, ease of use, battery life, functionality and even design, addressing key challenges in the mid-range/highend market, '' Ounjian wrote in a research report published last week. He rates the shares 'outperform'.
Nokia stretched its lead over Motorola to the widest in more than three years in the first quarter, Bostonbased researcher Strategy Analytics said last month.
Nokia captured 36.2% of the global handset market, while Motorola's share slid to 18%.
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