Investors welcomed Motorola Inc's rebirth as two independent companies, as shares of both Motorola Mobility and Motorola Solutions rose on their first official day of trading on Tuesday.
Shares of Motorola Mobility, which focuses on the smartphone and TV set-top business, were up 9 percent at $32.88.
Shares of Motorola Solutions Inc, which targets businesses with products like barcode scanners, were up 3.7 percent at 38.70.
Investors like billionaire activist Carl Icahn have long pushed for the separation of the two Motorola companies because it gives them a clearer choice between Mobility's fast-growing but volatile business and Solutions' steadier but slower growth.
The communication of our story to investors will be much simpler, said Motorola Mobility's Chief Executive Sanjay Jha at an event at the New York Stock Exchange on Tuesday.
Jha added that he expects his company to weather the competitive mobile market with its new smart phones, an upcoming tablet and revenue growth from markets in China and Latin America.
When you aggregate all that, that offsets some competitive dynamic that you will see in the first quarter, Jha said
Jha has previously said the first quarter would be challenging for the company, which Wall Street interpreted as a reference to Verizon expected move to carry Apple's iPhone.
Some analysts, like Susquehanna Financial Group's Jeffrey Fidacaro, were enthusiastic about Mobility's exposure to Google's Android operating system. The company's rivals Samsung Electronics and HTC Corp support operating systems other than Android.
Motorola Mobility is one of the few pure plays on the momentum on Android, Fidacaro said.
Fidacaro put a buy rating on Motorola Mobility and a price target of $35 for this year.
For Solutions, Fidacaro has a neutral rating and price target of $39 and said the company is focused on improving its debt rating to investment grade. He expects the company to repay shareholders with a dividend in 2012 and possibly a share buyback after that.
(Reporting by Liana B. Baker; Editing by Lisa Von Ahn, Dave Zimmerman)