UBS Starts Motorola Solutions at Buy, Sees Nearly 20% Upside

Motorola Solutions (MSI, Financials) got a vote of confidence from UBS on Wednesday as analyst Andrew Spinola initiated coverage with a buy rating and a $490 price target implying roughly 19% upside from Tuesday's close.

We think MSI is attractive at 27x NTM and we expect it to re-rate to 29x as growth accelerates into '26, Spinola wrote.

UBS sees multiple catalysts for the reacceleration: a recovery in Motorola's core Land Mobile Radio business, which had recently slowed; growth in its Video segment; and an expanded total addressable market following the acquisition of Silvus Technologies, which enhances the company's public safety communications and mesh networking capabilities.

Spinola said the market hasn't fully appreciated the scale of the company's transformation. The new, transformed Motorola is now a public safety/security solutions platform with a 5x larger TAM and better growth profile compared to 10 years ago, he wrote.

Despite a more than 11% decline in the stock year to date, MSI's long-term growth trajectory could help close the gap with broader market performance, UBS suggested.