Motorola Solutions Sees Strong Gains Amid Growing Market Demand
Motorola Solutions, Inc. (MSI), headquartered in Chicago, Illinois, is known for its public safety and enterprise security solutions. With a market cap of $83.7 billion, the company offers a range of products including data capture, wireless infrastructure, barcode scanning, two-way radios, and wireless broadband networks. Additionally, Motorola manufactures products for public safety, government communications, and wireless LAN security.
MSI Stock Outpaces Broader Market Performance
In the past year, shares of MSI have significantly outperformed the broader market. The stock has surged by 56.8%, while the S&P 500 Index ($SPX) has increased nearly 31%. Thus far in 2024, MSI stock has jumped 60%, overshadowing the SPX’s rise of 25.2% year-to-date.
Comparisons to SPDR S&P Telecom ETF
Focusing on sector performance, MSI’s gains are modest compared to the SPDR S&P Telecom ETF (XTL), which has risen about 57.1% over the past year. However, MSI shines on a year-to-date basis, outperforming the ETF’s gains of 37.1%.
Growing Demand for MSI’s Control Room Solutions
MSI’s current success owes much to its innovative Control Room Solution, which enhances emergency response for various fire and rescue services. This platform enables collaborative emergency management and has gained traction in the industry, highlighted by its recent adoption by the Scottish Fire and Rescue service. Moving forward, MSI anticipates growth in video security, command center software, and land-mobile radio services.
Solid Q3 Results Exceed Expectations
After reporting its third-quarter results on November 7, MSI shares saw a slight increase. The company’s adjusted earnings per share (EPS) stood at $3.74, beating analysts’ expectations of $3.38. MSI’s revenue was $2.79 billion, surpassing the forecast of $2.76 billion. For the full year, the expected adjusted EPS ranges from $13.63 to $13.68.
Analysts Remain Optimistic
This fiscal year, which concludes in December, analysts predict a 13.6% growth in MSI’s EPS, projecting it to reach $12.48 on a diluted basis. Over the past four quarters, the company has consistently exceeded earnings expectations, which adds to its positive outlook among analysts.
Currently, among 12 analysts covering MSI, the consensus rating is a “Strong Buy,” supported by eight “Strong Buy” ratings, one “Moderate Buy,” and three “Hold” ratings.
Investment Ratings and Price Targets
Over the last three months, the ratings have remained stable. On November 8, Morgan Stanley (MS) analyst Meta Marshall maintained a “Hold” rating on MSI, with a target price set at $430. The average price target across analysts stands at $509.33, indicating a 1.7% upside from the current levels. Some analysts even project a street-high target of $600, signaling a potential 19.8% increase.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
