Goldman Sachs Group Inc. Reiterates Neutral Rating for Motorola Solutions (MSI)
Motorola Solutions (NYSE:MSI)‘s stock had its “neutral” rating reiterated by analysts at Goldman Sachs Group Inc. in a research report issued to clients and investors on Thursday, American Banking and Market News reports. They currently have a $57.00 target price on the stock. Goldman Sachs Group Inc.’s price objective would suggest a potential downside of 0.44% from the company’s current price.
The analysts wrote, “The key takeaways from our meeting include: (1) Management remains confident about reaching operating margins of 18% in 2013 (vs. current consensus estimate of 17.4%) and 19% in 2014 (consensus at 18.5%). Most of the 2013 expansion will come from discretionary comp, while 2014 margin expansion is expected to be driven by revenue growth, R&D leverage, annualizing the benefit from recent restructuring actions, and lower pension expense. (2) There is no change to MSI’s capital allocation strategy post the recent CFO change. In fact, the $1bn reduction in MSI’s pension liability this year as a result of rising rates frees up capital for buybacks and/or incremental debt issuance. (3) While not the current strategy, management appears open to separating the Enterprise and Government businesses, and the synergies between the two appear limited. (4) Following this year’s deceleration on difficult comps, MSI expects its Government segment to return to 3-5% growth longer-term. It is experiencing stable ASPs and gross margins, and is encouraged by recent conversations around the LTE opportunity with FirstNet, though opportunities in the Middle East are taking longer to materialize. (5) In the Enterprise segment, MSI believes it has ‘derisked’ estimates for 2H13 and is starting to see early signs of traction with its Android-based products, as well as following a July 1 sales reorganization along industry verticals.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks reiterated a “neutral” rating on shares of Motorola Solutions (NYSE:MSI) in a research note to investors on Thursday, August 22nd. They now have a $59.00 price target on the stock. Separately, analysts at Thomson Reuters/Verus downgraded shares of Motorola Solutions (NYSE:MSI) from a “buy” rating to a “hold” rating in a research note to investors on Monday, August 5th. Finally, analysts at Argus downgraded shares of Motorola Solutions (NYSE:MSI) from a “buy” rating to a “hold” rating in a research note to investors on Friday, July 26th.
Thirteen research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $58.64.
Shares of Motorola Solutions (NYSE:MSI) traded up 0.59% on Thursday, hitting $57.59. 801,647 shares of the company’s stock traded hands. Motorola Solutions has a 52-week low of $49.14 and a 52-week high of $64.72. The stock has a 50-day moving average of $56.32 and a 200-day moving average of $58.72. The company has a market cap of $15.311 billion and a price-to-earnings ratio of 16.30.
Motorola Solutions (NYSE:MSI) last issued its quarterly earnings data on Wednesday, July 24th. The company reported $1.12 earnings per share for the quarter, beating the analysts’ consensus estimate of $1.04 by $0.08. The company had revenue of $2.11 billion for the quarter, compared to the consensus estimate of $2.13 billion. During the same quarter in the previous year, the company posted $0.70 earnings per share. The company’s revenue for the quarter was down 1.9% on a year-over-year basis. Analysts expect that Motorola Solutions will post $4.40 EPS for the current fiscal year.
Motorola Solutions, Inc (NYSE:MSI) provides mission-critical communication infrastructure, devices, software and services.
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