Shares of (MMI) Cut on Lower Xoom Sales

Shares of Motorola Mobility (NYSE:MMI) were getting hit today as Oppenheimer & Co. analyst Ittai Kidron cut his outlook on the stock after he downwardly adjusted his expectations for sales of "Xoom."

Kidron said, “We believe Motorola has missed an opportunity to make its mark in the market by initially targeting value vs. volume.”

He said he sees more modest sales of Xoom than he has originally expected, and thinks they missed a big opportunity by not offering a variety of tablets at different price points.

Consequently, he cut his 2011 EPS and revenue outlook for Motorola Mobility, as it looks like they won't get the market share gains he thought they would against Apple’s (NASDAQ:AAPL) iPad 2.

Kidron reiterates an "Outperform" rating on Motorola Mobility, which was trading at $23.35, down $1.34, or 5.43 percent, as of 2:40 PM EDT. He also lowered his price target on the company from $36 to $32.