/Motorola%20Solutions%20Inc%20lofo%20on%20display-by%20N_Z_Photography%20via%20Shutterstock.jpg)
Chicago, Illinois-based Motorola Solutions, Inc. (MSI) provides public safety and enterprise security solutions. Valued at $83.7 billion by market cap, the company develops data capture, wireless, infrastructure, bar code scanning, two-way radios, and wireless broadband networks. Motorola also produces public safety and government products, voice and data communications products and systems, and wireless LAN securities.
Shares of this leading provider of communications and analytics have outperformed the broader market considerably over the past year. MSI has gained 56.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31%. In 2024, MSI stock is up 60%, surpassing the SPX’s 25.2% rise on a YTD basis.
Narrowing the focus, MSI’s underperformance is apparent compared to the SPDR S&P Telecom ETF (XTL). The exchange-traded fund has gained about 57.1% over the past year. However, MSI’s returns on a YTD basis outshine the ETF’s 37.1% gains over the same time frame.
MSI's ongoing success is due to several fire and rescue services choosing to implement its Control Room Solution to enhance emergency response capabilities. This new control room platform, known for its collaborative emergency service management, is gaining momentum in the market. Recent integration with the Scottish Fire and Rescue services further solidifies MSI's position in the industry. Looking ahead, MSI is expected to see growth in video security, command center software, and land-mobile radio services in the coming quarters.
On Nov. 7, MSI shares closed up marginally after reporting its Q3 results. Its adjusted EPS of $3.74 surpassed Wall Street expectations of $3.38. The company’s revenue was $2.79 billion, beating Wall Street forecasts of $2.76 billion. MSI expects full-year adjusted EPS to be between $13.63 and $13.68.
For the current fiscal year, ending in December, analysts expect MSI’s EPS to grow 13.6% to $12.48 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 12 analysts covering MSI stock, the consensus is a “Strong Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
The configuration is consistent over the past three months.
On Nov. 8, Morgan Stanley (MS) analyst Meta Marshall maintained a “Hold” rating on MSI with a price target of $430.
The mean price target of $509.33 represents a 1.7% premium to MSI’s current price levels. The Street-high price target of $600 suggests an upside potential of 19.8%.
