Ericsson

(ERICY)

was up 1.1% in midmorning, reversing a sharp slide that followed a warning Friday of losses in its handset operations.

Lehman Brothers

and

J.P. Morgan

downgraded the company, while

Morgan Stanley Dean Witter

and

Deutsche Bank Alex. Brown

lowered their price targets.

CEO Kurt Hellstrom told

Reuters

today that the company will step up research and development spending and acquisitions. Rival

Nokia

(NOK) - Get Report

was down 1.9%, while

Motorola

(MOT)

was up 4.6%.