BofA Cuts Motorola Solutions Price Target to $500 on Backlog Delays
BofA cut Motorola Solutions’ price target to $500 from $520 citing timing challenges in order fulfillment despite a record $15.7B backlog at year-end. The company delivered Q4 revenue of $3.38B (+12%), full-year non-GAAP EPS of $15.38 (+11%) and GAAP EPS of $12.75 (+38%), with $2.8B in operating cash flow.
1. BofA Lowers Price Target
BofA Securities cut Motorola Solutions’ price target to $500 from $520, citing timing challenges in order fulfillment due to backlog delays.
2. Robust Q4 and Full-Year Performance
In Q4, the company generated $3.38 billion in revenue, up 12% year-over-year, with non-GAAP EPS of $4.59 and GAAP EPS of $3.86 rising 8%. Full-year non-GAAP EPS climbed 11% to $15.38 while GAAP EPS increased 38% to $12.75.
3. Backlog Expansion and Cash Flow
Year-end backlog reached a record $15.7 billion, $1 billion higher than a year earlier, while Q4 operating cash flow totaled $1.3 billion and full-year cash flow was $2.8 billion. Capital returns included $182 million in dividends and $490 million in share repurchases.