Motorola’s Third-Quarter Beat Exemplifies Diverse Portfolio and Profitability; Raise FVE to $210

We are raising our fair value estimate for Motorola Solutions to $210 from $195 after a meaningful beat against third-quarter guidance and another raise to its full-year outlook. We are impressed with the company’s ability to execute well in the face of supply constraints, inflationary costs, and the strengthening U.S. dollar thus far, and we expect continued strength as headwinds begin to ease. We view long-lasting demand for its comprehensive suite of public safety solutions as a prerogative for its narrow economic moat. Still, we view shares as overvalued and would recommend investors wait for a lower entry point.