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.