Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com -- UBS initiated coverage on Motorola Solutions Inc (NYSE:MSI) with a Buy rating and a $490 price target given a likely reacceleration in growth across its core and emerging businesses in fiscal 2026.
The firm sees 18% upside from current levels, arguing the stock’s valuation, trading at 27x next-twelve-month earnings, is attractive ahead of an expected rerating to 29x as growth improves.
UBS forecast EPS of $16.66 for the second half of 2026 into 2027, well above implied market expectations of $14.41.
Motorola’s core land mobile radio (LMR) business is expected to rebound in 2026, recovering from backlog-related headwinds that slowed growth by about 400 basis points in FY25.
UBS models an 80bps recovery in LMR and 100bps acceleration in the company’s Video segment, supported by the launch of the SVX body camera, which integrates Motorola’s voice technology.
The note also pointed to the company’s $4.4 billion acquisition of Silvus Technologies as a long-term growth driver.
Silvus expands Motorola’s footprint in the defense technology market and boosts exposure to autonomous systems and secure high-bandwidth communications. UBS estimates the deal could lift FY26 revenue by 200–300 basis points and be earnings accretive.
UBS said investors underappreciate the transformation of Motorola into a broad public safety and security platform, with a total addressable market five times larger than a decade ago.
It expects double-digit growth in both the Video and Command Center segments, with potential share gains from the SVX rollout and new contracts.