BMO Capital Raises Motorola Solutions (MSI) to 'Outperform' Ahead of Catalysts

October 12, 2016 6:53 AM EDT
Get Alerts MSI Hot Sheet
Price: $83.17 +0.89%

Rating Summary:
    8 Buy, 13 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 17 | New: 10
Trade MSI Now!
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

(Updated - October 12, 2016 8:38 AM EDT)

BMO Capital upgraded Motorola Solutions Inc. (NYSE: MSI) from Market Perform to Outperform with a price target of $84.00. Analyst Tim Long sees catalysts from the return of organic revenue growth, smart public safety software expansion, and growth in public safety LTE.

"We expect organic revenue growth to return later this year, investment in smart public safety software to help expansion beyond hardware, and growth in public safety LTE after a FirstNet contract announcement," said Long.

The analyst continued, "After several years of tough headwinds, organic revenue growth is set to return by 4Q16. Combined with the AirWave acquisition and management's diligently taking expenses out of the business, this should drive continued double-digit growth at the bottom line."

Discussing smart public safety software expansion, the analyst said, "Management sees an opportunity beyond traditional equipment sales and is investing in smart public safety software opportunities, such as computer-aided dispatch and records management. Motorola Solutions is buying a small firm to beef up its offering in this area, and management has been changing sales incentives to help with the transition from hardware sales."

On public safety LTE catalysts, Long added, "Although Motorola Solutions' growth in public safety LTE was slowed by government regulation, we believe the pending FirstNet decision, expected in November, will open opportunities for growth. Even if the company doesn’t win the primary contract, we believe its investment in LTE-LMR interoperability will lead to sales opportunities for services and hardware."

For an analyst ratings summary and ratings history on Motorola Solutions Inc. click here. For more ratings news on Motorola Solutions Inc. click here.

Shares of Motorola Solutions Inc. closed at $73.50 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS View, Analyst PT Change, Upgrades

Related Entities

BMO Capital, Definitive Agreement

Add Your Comment