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Ahead of the Bell: Motorola downgraded to 'Market Weight'

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April 28, 2008

NEW YORK—Motorola shares' performance will remain weak, a Thomas Weisel analyst said, as the company divides itself and struggles with lackluster handset sales.

Analyst Matthew Sheerin downgraded the stock to "Market Weight" from "Overweight" Monday and reduced his price target to $11 per share from $18. The Chicago company reported first-quarter results Thursday, taking a larger-than-expected loss and posting lower revenue, as cell phone sales continued to be weak.

Motorola Inc. is splitting into two companies, a process Sheering said will be lengthy and may last for a few quarters. He added that the mobile device business is losing market share, and it is becoming less likely that the unit will post significant profits again.

Motorola shares lost 4 cents at $9.20 in premarket trading. They closed at $9.24 on Friday.

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