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Motorola Solutions Inc MSI

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Motorola Solutions Remains Poised to Win in Software and Services; Raising FVE to $174

Brian Colello, CPA Sector Director

Analyst Note

| Brian Colello, CPA |

Motorola Solutions reported solid fourth-quarter results with revenue and EPS ahead of the firm’s guidance and FactSet consensus estimates. Motorola had another strong quarter of year-over-year growth in software, video security, and command center systems. The company also witnessed a record high in orders for land mobile radios, or LMRs, in North America, which bodes well for the firm’s expectations of mid-single-digit growth in its product & systems integration, or P&SI,  segment in 2021. We are raising our fair value estimate for narrow-moat Motorola to $174 per share from $161, mostly as we roll our valuation model for the time value of money. We view shares as fairly valued.

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Company Profile

Business Description

Motorola Solutions provides communication infrastructure, devices, accessories, software, and services. The company operates two segments: products and systems integration, and services and software. The firm is considered the standard-bearer in the public safety space with 80% of the market. It also offers a variety of services such as repair, technical support and maintenance, monitoring, software updates, and cybersecurity services.

Contact
500 West Monroe Street, Suite 4400
Chicago, IL, 60661
T +1 847 576-5000
Sector Technology
Industry Communication Equipment
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 18,000

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