Hudson Maintains Neutral on Motorola Solutions (MSI)

Hudson is out with its report today on Motorola Solutions MSI, maintaining Neutral after MSI reported Q4 10 results. In a note to clients, Hudson writes, "For its 4Q10 ended December, MSI reported mixed results. Specifically, revenue for the quarter was $2.2B, a 13% increase Y/Y and better than our estimate of $2.1B. EPS for the quarter was $0.60, about $0.04 below our $0.64 estimate. The shortfall in the bottom line is largely attributable to higher Other Expense of $25.0MM – we had been modeling $15MM of other expense which was being offset by $15MM in other income. The company has a strong position in its core markets and stands to benefit from the upgrade to digital technologies in the public safety sector. However, the stock currently trades at 18X our 2011 EPS estimate of $2.20. As such, we feel the shares are fairly valued and maintain our Neutral rating." Hudson has a $38 PT on MSI. At the time of posting, shares of MSI were trading at $38.41, down 0.44% from Thursday's close.