Motorola Solutions (MSI) Stock Forecast & Price Target

Motorola Solutions demonstrated a solid growth trajectory with normalized revenue increasing by 4%, driven partly by M&A activities that contributed $123 million, primarily from the acquisition of Silvus. The company has shown a robust acceleration in Software and Services (S&S) revenue, achieving an 11% growth rate, which surpasses the base case expectations of a 7% compound annual growth rate (CAGR) through 2027, potentially reaching $13.2 billion in total revenue. Furthermore, the backlog is indicative of strong future growth, with expectations of a 6-10% increase, reflecting an increasing trend of recurring revenue sources and a solid foundation for long-term profitability.

Motorola Solutions is facing a negative outlook due to the decline in the Product RPO "coverage ratio" observed in the first half of 2025, signaling potential challenges in revenue recognition. The firm is experiencing a slowdown in bookings, which remained flat year-over-year, compounded by elevated sentiment and valuations that are near peak levels in relation to its modest high single-digit normalized growth. Additionally, customer headwinds such as difficulties with the UK Home Office contract further underscore the financial pressures impacting the company’s future performance.