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Susquehanna Starts Motorola Solutions (MSI) at Neutral, Price Target $39

January 3, 2011 7:29 AM EST Send to a Friend
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Price: $61.70 +0.10%

Rating Summary:
    5 Buy, 11 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 9 | New: 11
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Susquehanna initiates coverage on Motorola Solutions Inc. (NYSE: MSI) with a Neutral rating and a price target of $39. The firm reports that they like the amount a cash the company currently has in its balance sheet and sees a potential dividend reinstatement of 2-3% by the board. Susquehanna believes that, "a financial buyer may be interested in taking MSI private as our LBO model suggests that with a 25-30% equity stake ($3.5B-$4B) levered 5.5x-6x, MSI could generate a 15-20% IRR with a five-year exit." They also mention that the company will see core market growth of 5-8% with potential for margins to improve once MSI adjusts its cost structure after the sale of its Networks division.

For more ratings news on Motorola Solutions Inc. click here and for the rating history of Motorola Solutions Inc. click here.




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