Sector Wrap: Handset stocks mostly decline

Motorola shares fell 50 cents, or 6.3 percent, to finish the day at $7.44. Earlier in the day, the stock traded as low as $7.30--its lowest price since May 2003.

In a client note, Piper Jaffray analyst T. Michael Walkley downgraded the stock to "Sell" from "Neutral" and reduced his price target to $7 from $9.75.

Walkley said that June checks indicate Motorola is continuing to lose share of the North American handset market--a market which makes up almost half its unit sales.

The analyst, who in a separate note lowered his global 2008 handset unit growth forecast to 10.1 percent from 11.5 percent, cut his 2008 handset forecast for Motorola to 106 million from 116 million.

A Motorola spokeswoman said the company had no comment.

Meanwhile, shares of Nokia Corp. rose 14 cents to $24.43.

Piper analyst Walkley slightly lowered his 2008 earnings estimate for Nokia to $2.56 from $2.63 per share, though he said the shares "represent a compelling opportunity at current levels."

The analyst kept his "Buy" rating for the stock and decreased his price target by $1 to $41.

Elsewhere in the sector, shares of Blackberry smartphone maker Research In Motion Ltd. declined $1.50 to $143.06.