Evercore ISI analyst Amit Daryanani reiterated an Outperform rating and $525.00 price target on Motorola Solutions Inc. (NYSE: MSI).

The analyst comments "ALL YOU NEED TO KNOW: Earlier this morning before market open, MSI announced their intent to acquire D-Fend, a provider of counter-drone technology for ~$1.5B. The target will provide MSI with counter-drone capabilities for public safety and enterprise customers, specifically the ability to detect, locate, identify, and more importantly mitigate unauthorized drones (Safer Skies Act authorizes trained and certified state and local law enforcement to detect, track, and mitigate drones where permitted). D-Fend’s non-kinetic mitigation uses a differentiated advanced RF cyber-takeover technology that enables public safety agencies to override/redirect communications for unauthorized drones and land them safely. The technology is deployed across more than 30 countries protecting airports, critical infrastructure, stadiums, borders, military bases, and enterprises. The deal complements MSI’s expertise in mission-critical RF technologies across their LMR/MANET (Silvus) portfolio though worth noting that D-Fend is mostly focused on public safety while Silvus is mostly for Defense. The D-Fend transaction is expected to close in Q4:26 and the company expects to generate $185M in revenue for CY26 (implies ~8x revenue multiple for D-Fend though worth noting that 2026 is ~halfway through and FTM revenue is likely higher than $185M given >50% annual rev growth over last three years). Overall contribution to MSI’s CY26 results should be minimal though it should add >1pt of growth to CY27’s reported revenue. Net/net: The D-Fend key acquisition reinforces MSI’s capabilities in the rapidly growing unmanned market. Maintain OP/$525 Target."

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Shares of Motorola Solutions Inc. closed at $403.28 yesterday.