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UPDATE: Citigroup Assumes Coverage on Motorola Solutions, Enterprise Clouds Remain

Related MSI
Motorola Solutions Purchases Approximately $750M Of Its Common Stock From ValueAct Capital
UPDATE: Motorola Solutions Q3 Profit Tops Estimates

In a report published Wednesday, Citigroup analyst Ehud Gelblum assumed coverage on Motorola Solutions (NYSE: MSI) with a Neutral rating, and raised the price target from $64.00 to $65.00.

In the report, Citigroup noted, “We are assuming coverage of MSI with a Neutral rating and a $65 price target as slowing share repurchases likely lead to fewer catalysts and an increased focus on the fundamentals. While we like the moat around the government business, we fear the signs of improvement in the enterprise business may not be sustainable. We are concerned that the approaching end of the capital return strategy, the primary driver of EPS growth in 2012 and 2013, leaves the stock with fewer catalysts over the next year. That being said, we believe management is likely to remain shareholder friendly, having shrunk the share count by 25% in just nine quarters through buybacks, and having kept a tight lid on expenses, with the Q3'13 reorganization a key enabler of the 19% 2014 operating margin target.”

Motorola Solutions closed on Tuesday at $65.49.

Latest Ratings for MSI

DateFirmActionFromTo
Nov 2014CitigroupMaintainsNeutral
Nov 2014Deutsche BankMaintainsHold
Nov 2014NomuraMaintainsNeutral

View More Analyst Ratings for MSI
View the Latest Analyst Ratings

Posted-In: Citigroup Ehud GelblumAnalyst Color Initiation Analyst Ratings

 

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