The Zacks Analyst Blog Highlights: AT&T, Google, Motorola Mobility Holdings, Verizon Communications and Nike

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Oct 13, 2011, 09:30 ET

CHICAGO, Oct. 13, 2011 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AT&T Inc. (NYSE: T), Google Inc. (Nasdaq: GOOG), Motorola Mobility Holdings Inc. (NYSE: MMI), Verizon Communications (NYSE: VZ) and Nike Inc. (NYSE: NKE).

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Here are highlights from Wednesday's Analyst Blog:

AT&T Offers More Androids, Tops Goal

AT&T Inc. (NYSE: T) introduced five new smartphones based on Google Inc.'s (Nasdaq: GOOG) Android operating system.

The second-largest U.S. mobile service provider unveiled Motorola Mobility Holdings Inc.'s (NYSE: MMI) ATRIX 2, which is on the top list of its portfolio. The device will hit stores on October 16 with a $99.99 price tag and a two-year contract.

The other smartphones introduced were Samsung Captivate Glide, Samsung DoubleTime, Pantech Pocket and AT&T Avail. Notably, AT&T Avail is the second Android phone offering prepaid services. The pricing and availability of these handsets were not disclosed.

The new additions bring the total number of smartphones to 19 for 2011, up from the targeted 12.

We believe strong smartphones sales coupled with growth in tablets and connected devices are accelerating subscriber gains while reducing churn. AT&T added 1.1 million wireless customers in the second quarter.

Despite the loss of the exclusive hold on iPhone to its largest rival Verizon Communications (NYSE: VZ), AT&T activated 3.6 million iPhones in the second quarter compared with 3.2 million in the year-ago quarter. The strength comes from the rapid adoption of smartphones that increased 43% year over year.

AT&T is pursuing a number of strategies to tap opportunities in the wireless data market and currently operates the nation's fastest mobile broadband network. The company has a large collection of smartphones, tablets, modems and mobile hotspots.

Moreover, the company debuted it long-awaited 4G Long-Term Evolution wireless networks in the U.S. last month. The company has initially launched its services in five cities namely Atlanta, Chicago, Dallas, Houston and San Antonio and looks to cover approximately 15 markets and 70 million Americans by the end of the year. AT&T also seeks to enter into the hotel WiFi (wireless broadband) business.

We are maintaining our long-term Neutral recommendation on the stock with the Zacks #3 Rank (Hold).

Nike Sets Sales Target

As per a Reuters report, Nike Inc. (NYSE: NKE) has set an annual sales target of $4 billion from China by fiscal 2015. To attain this lofty aim, the company hopes to bring about a reform in the exercise and sporting habits of Chinese citizens. The company CFO mentioned that China, with its large population, is tuned into sports without actively participating in it.

The company had reported annual sales of $2.1 billion in China in the last fiscal year while the first quarter 2012 booked Chinese sales of $528 million.

The company, which is already operational in China with 7,500 outlets, aims to expand its store operations there, particularly cashing in on Chinese sports stars with which it has endorsement deals, such as French Open tennis champion Li Na. The company is also looking for a deal with Chinese track star Liu Xiang, which will help in boosting sales of its running and athletic gear.

With an eye on capturing the Chinese sports apparel market, the company is also arranging to host a snowboarding event near Beijing next year strategically before the Winter Olympics when this sport gains popularity.

Taking into account Nike's dominance in the athletic industry, we believe that the company has the ability to drive consistent growth. The company's long-term strategy of aggressively expanding operations into emerging markets and focusing on direct-to-consumer business and other brands adds to our positive sentiment.

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