Motorola Solutions Managing Gauntlet of Tight Supply, Inflation, Foreign Exchange Well; $195 FVE

We’re maintaining our $195 per share fair value estimate for narrow-moat Motorola Solutions after its first-quarter results provided upside to our expectations with a reaffirmation of its prior full year guidance for 2022. We think shares have come down to earth this year, and now view them as fairly valued. We think demand is strong and Motorola is generally executing well in the face of supply constraints, inflationary costs, and foreign exchange headwinds that are pressuring the top line and margins. For the long term, we continue to think Motorola will enjoy demand for its comprehensive solution set for public safety that we view as mission critical, sticky, and driving its narrow economic moat.