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

In a report published Wednesday, Citigroup analyst Ehud Gelblum assumed coverage on Motorola Solutions 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.