Motorola might see large positive aspects from right here, in keeping with Morgan Stanley. Analyst Erik Lapinski upgraded shares of Motorola to chubby from equal weight, saying in a Monday word that the telecommunications firm is engaging within the present market and will attain $300 a share in two years in its bull case. “Our evaluation exhibits the $300 Bull case valuation on MSI on a 2-year view is achievable (20% 2-year compound return) and provides defensive earnings development,” Lapinski wrote. “Current pullback in MSI and a market backdrop that makes a extra defensible earnings development story display engaging creates a chance to step in with upside potential.” Shares of Motorola Options have practically 15% upside from Friday’s closing worth primarily based on Morgan Stanley’s base case of a $240 worth goal. They’ve practically 50% upside primarily based on Morgan Stanley’s $300 bull case. Analysts imagine the bull case is supported by a powerful cycle for Motorola’s land-mobile-radio (LMR) product, its growth into video surveillance expertise, and the corporate’s working effectivity. “We had been believers within the Bull case after we initiated on MSI with an EW score final yr, however thought it will take time to attain. Now a yr later and preferring a extra defensible earnings development story, we improve to OW,” Lapinski wrote. Shares of Motorola Options jumped 5% in Monday premarket buying and selling. —CNBC’s Michael Bloom contributed to this report.
Greg Brown, Chairman and CEO of Motorola, speaks at CNBC’s Evolve convention in Chicago on Sept. 24, 2019.
Jeff Schear | CNBC
Motorola might see large positive aspects from right here, in keeping with Morgan Stanley.