Friday, March 11, 2011

Motorola (MMI), RIM (RIMM) Concerns Overblown Says Morgan Keegan

According to Morgan Keegan analyst Travis McCourt, concerns over the performances of Motorola (NYSE:MMI) and RIM (NASDAQ:RIMM) are overblown.

He noted that sales of BlackBerry's and Xoom tablets aren't as weak as reported by the media, saying concerning Xoom, his checks are in line with his estimates of 300,000 being sold this quarter.

BlackBerry continues to perform in a stable manner, said McCourt, even after releases at Verizon (NYSE:Vz) and AT&T (NYSE:T) which compete with it. BlackBerry at Sprint (NYSE:S) is doing surprisingly well, he added.

“There appears to have been no dramatic change in BlackBerry sell-through at AT&T or Verizon, although we suspect sell-through is down modestly with the recent competitive launches," concluded the analyst.

Morgan Keegan maintains an "Outperform" rating on RIM and a "Market Perform" rating on Motorola. RIM was trading at $63.30, up $0.70, or 1.12 percent, as of 11:52 AM EST. Motorola Mobility was trading at $24.50, down $0.71, or 2.84 percent.

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