Market Overview

Deutsche Bank Makes A Bull Call On Motorola Solutions

Share:
Deutsche Bank Makes A Bull Call On Motorola Solutions
Related MSI
Earnings Scheduled For November 1, 2018
10 Biggest Price Target Changes For Tuesday

Motorola Solutions Inc (NYSE: MSI) is trading up after being upgraded by Deutsche Bank and named as the firm's large-cap value idea. 

The Analyst

Deutsche Bank analyst Vijay Bhagavath upgraded shares of Motorola Solutions from Hold to Buy and increased the price target from $86 to $110, suggesting roughly 18-percent upside from current levels.

The upward adjustment to the price target reflect Deutsche Bank's updated 2018-2020 revenue and earnings estimates, which are ahead of consensus expectations.

Bhagavath also named Motorola as his large-cap value idea. (See the analyst's track record here.) 

The Thesis

Motorola's software command center solutions business is likely to grow by 25 percent on a CAGR basis, Bhagavath said in a Thursday note. This is a core driver for improving margins and positive earnings "surprises" during 2018, 2019 and beyond, he said.

Motorola is incorporating a higher percentage of software features in its core devices and systems portfolio over the near- to mid-term, which the analyst said is another key catalyst for potential earnings per share upside.

Deutsche Bank's fresh view of the company suggests improving order trends for its radios and systems in 2018 and beyond at state, local and federal agencies in the U.S., Bhagavath said.

Motorola's near-term catalysts are the following, the analyst said: 

  • Refresh opportunities for the company's public safety portfolio.
  • New orders for major world events such as the Winter Olympics and World Cup.
  • A setup for better-than-expected public safety IT budgets in the new federal fiscal year. 

The Price Action

Shares of Motorola Solutions are up about 15 percent over the past year.

At the time of publication, shares were up 3.04 percent at $96.38.  

Related Links:

Apple's iPhone Retention Rate At 92% This Year

Citron Sees 78% Downside In Motorola Solutions, Company Calls Claims 'Baseless'

Latest Ratings for MSI

DateFirmActionFromTo
Nov 2018Deutsche BankMaintainsBuyBuy
Nov 2018JP MorganMaintainsUnderweightUnderweight
Nov 2018CitigroupMaintainsBuyBuy

View More Analyst Ratings for MSI
View the Latest Analyst Ratings

Posted-In: Citron Research communications Deutsche BankAnalyst Color Short Sellers Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (MSI)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DESPKeyBancInitiates Coverage On0.0
MELIKeyBancInitiates Coverage On0.0
ALBKeyBancMaintains120.0
AVNSKeyBancMaintains67.0
ABTCredit SuisseInitiates Coverage On82.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

33 Stocks Moving In Friday's Mid-Day Session

Mid-Day Market Update: Dow Surges Over 200 Points; AquaBounty Technologies Shares Plummet