Morgan Stanley believes that Motorola may see huge gains here. Morgan Stanley analyst Erik Lapinski said that Motorola shares were now overweight and equal in weight. He stated in Monday’s note that Motorola is attractive on the current market, with the possibility of reaching $300 per share within two years. Lapinski stated that the $300 Bull Case valuation of MSI with a 2-year perspective is feasible (20% compound return and offers defensive earnings growth.” A recent pullback on MSI combined with an attractive market backdrop makes it possible to take advantage of the upside potential. Motorola Solutions shares are up nearly 15% from Friday’s closing prices based upon Morgan Stanley’s base price of $240. Based on Morgan Stanley’s $300 bull case, they have almost 50% upside. The bull case’s strength is believed to be supported by strong cycles for Motorola’s LMR product and its expansion into video surveillance technology. Analysts also believe that the company’s operational efficiency will support the bull case. When we launched on MSI last year with an EW rating, we believed that the Bull case would succeed. But it took time. Lapinski explained that OW was a preferred choice because it is more defensible and allows for earnings growth. Motorola Solutions shares rose 5% during Monday’s premarket trading. —CNBC’s Michael Bloom contributed to this report.
Greg Brown (CEO and Chairman of Motorola) speaks to CNBC’s Evolve conference, Chicago, Sept. 24, 2019.
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MotorolaAccording to Morgan Stanley, there could be huge gains.
