Analyst Tomer Zilberman from Bank of America Securities maintained a Buy rating on Motorola Solutions (MSI – Research Report) and keeping the price target at $520.00.
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Tomer Zilberman has given his Buy rating due to a combination of factors surrounding Motorola Solutions’ strategic acquisition of Silvus. This acquisition is seen as a positive move, opening new use cases and opportunities, particularly in unmanned and autonomous systems, and aligning with US Department of Defense and Department of Homeland Security priorities. The acquisition is expected to accelerate Motorola’s topline growth and be accretive to earnings per share, enhancing the company’s long-term growth prospects.
Zilberman notes that Silvus brings an attractive revenue and profitability profile, with management projecting significant revenue growth and a strong EBITDA margin by 2025. The acquisition is likely to support sustained growth in Motorola’s Land Mobile Radio segment, which is expected to grow above market rates. Additionally, the acquisition could lead to multiple expansion for Motorola’s stock, given its current trading levels and the potential integration benefits of Silvus into Motorola’s core business.
In another report released today, Barclays also maintained a Buy rating on the stock with a $511.00 price target.
MSI’s price has also changed moderately for the past six months – from $500.660 to $420.830, which is a -15.94% drop .
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