Motorola Solutions (MSI) to Benefit From AI-Driven Video Safety Developments

Motorola Solutions (NYSE:MSI) is one of the 11 best communication equipment stocks according to hedge funds.

As of the close of play on February 9, consensus sentiment around Motorola Solutions (NYSE:MSI) was highly bullish. The stock had received coverage from 5 analysts, all of whom have assigned Buy ratings. With no Sell rating, it carries a projected median 1-year price target of $462.25, implying upside of more than 10%.

On January 5, Piper Sandler analyst James Fish upgraded his rating on Motorola Solutions (NYSE:MSI) from Neutral to Overweight. However, the analyst lowered the stock price target from $465 to $443.

Fish attributed his unchanged thesis to Motorola’s leadership in LMR, noting an ongoing renaissance across public safety and major events in major geographies. The analyst acknowledged an AI-driven momentum in Video Safety, which has led to strong capital allocation by the company. Bookings growth has resumed amid an increased significance of drone security management, which has improved the demand backlog. Fish believes that the 15% valuation compression has created a more attractive entry point for investors.

Motorola Solutions (NYSE:MSI) offers public safety and enterprise security solutions and operates through two segments: Products & Systems Integration and Software & Services. The company deploys land mobile radio devices to integrate critical communications, video security, and command center technologies. It also offers security solutions through AI-powered video systems, surveillance cameras, and tools.

While we acknowledge the potential of MSI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.