Piper Sandler upgrades Motorola Solutions on better valuation, bookings trends

Piper Sandler analyst James Fish upgraded Motorola Solutions (MSI) to Overweight from Neutral with a price target of $443, down from $465 on a lower multiple. The firm notes that its thesis remains unchanged, namely that LMR is a sticky business in which Motorola is the global leader with a refresh catalyst, public safety is going through a renaissance with sticky budgets and large events coming to major geographies, Video Safety is on the rise with a new AI catalyst, and management has been strong stewards of capital. What has changed since September though is the increasing importance of drone-security management, bookings returning to reported growth that has caused backlog relative to expectations to show better “coverage,” and valuation contracting 15% that provides the better entry point the firm had been looking for, Piper adds.