Motorola Solutions Sees Multi-Year Growth Opportunity in Public Safety
BofA analysts are bullish on Motorola Solutions
BofA analysts have given Motorola Solutions a Buy rating and set a $330 price target, signaling their confidence in the company’s prospects. In a research note, the analysts highlighted Motorola’s multi-year opportunity in the public and enterprise safety sector.
Motorola Solutions well-positioned for growth
The analysts believe that Motorola Solutions is well-positioned to capitalize on multiple tailwinds that support its growth. The company’s focus on public safety and enterprise security gives it solid pricing power and access to a healthy funding environment, thanks to the American Rescue Plan Act (ARPA). This favorable environment has also resulted in a sustainable order pipeline.
Video security segment offers robust growth potential
According to BofA, the video security segment presents a significant growth opportunity for Motorola Solutions. In 2022, the segment experienced a 24% year-on-year growth, driven by a 28% increase in software revenue. The analysts predict that software will continue to play a crucial role, contributing 20% of the company’s total revenue by 2025. This projection indicates solid revenue and margin growth potential, ultimately driving robust earnings growth for Motorola Solutions.
Motorola Solutions’ commitment to public safety and enterprise security, coupled with its focus on the video security segment, positions the company for success in the coming years. With a Buy rating and a price target of $330, BofA analysts are confident in Motorola Solutions’ ability to seize the multi-year growth opportunity in the public and enterprise safety industry.
