Motorola Solutions Earnings: Public Safety Demand Keeps Humming; Valuation Up to $237 From $230

We raise our fair value estimate for narrow-moat Motorola Solutions to $237 per share, from $230, to incorporate slightly higher 2024 guidance and account for the time value of money. Motorola beat its quarterly guidance again and provided an upbeat outlook for the first quarter and full year. Strong results continue to demonstrate durable demand for public safety across Motorola’s radio, video, and software portfolio. We see the firm as uniquely positioned to benefit from public safety with its comprehensive solution set, which also undergirds our moat rating. We continue to see shares as overvalued, however. Shares dipped roughly 3% afterhours following the release of results, which we see as a moderation in high expectations that have driven shares to levels above the firm’s fundamentals.