Motorola Solutions Inc (NYSE: MSI) is still trading near the same price at which it started the year but a JPMorgan analyst is convinced that it’ll be a different story over the next twelve months.
Motorola stock price looks attractive
On Thursday, Paul Chung upgraded the telecommunications equipment company to “overweight” and raised his price target to $305 that suggests close to a 20% upside on its previous close.
His constructive view is based primarily on valuation. The analyst said today in a research note:
The stock has retraced back to levels pre-4Q print, and we take advantage of overall market volatility to establish a long-term position in this high-quality stock.
Last month, the video equipment and software solutions provider reported its financial results for the fourth quarter that handily topped estimates. Motorola stock ended about 4.0% up on Thursday.
Why else is he bullish on Motorola stock?
“MSI” spun off from Motorola Mobility Holdings (telephone company) in 2011. In over a decade, the stock has had only two down years.
Other reasons Paul Chung cited for his positive outlook on Motorola stock include its footprint in the public safety market and strong backlog levels.
Backlog remains at record levels with strong upgrade cycle in LMR in early innings, along with robust demand for video analytics solutions across multiple industry verticals.
The tech stock currently has a dividend yield of 1.31% that makes up for an additional reason to own shares of this Chicago-headquartered firm.
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