By Peet Serfontein & Motheo Tlhagale
We initiate a long position. Our upside target is set at $476. We recommend a stop-loss at $402.
Motorola Solutions, Inc. is a leading provider of mission-critical communications and analytics solutions for public safety and enterprise security. Founded in 1928 as Galvin Manufacturing Corporation, the company gained early success with its Motorola car radio, eventually adopting "Motorola" as its official name in 1947. A pivotal moment came in 2011 when Motorola, Inc. split into two independent companies: Motorola Mobility, focusing on consumer technology, and Motorola Solutions, which retained the government and enterprise communications business. Since then, Motorola Solutions has traded on the NYSE under the ticker symbol MSI.
The company delivers integrated technology platforms including two-way radios, command centre software, video surveillance systems, and managed services. It serves emergency responders, government agencies, and commercial clients around the world, aiming to enhance real-time communication and situational awareness in critical environments.
Technically, a price that appears to be at the start of Wave 5 of the Elliott wave price theory presents a promising investment opportunity for the stock (see the notation on the main chart).
Wave 5 typically marks the final leg of a motive wave sequence and is often fuelled by renewed investor optimism, improving fundamentals, or broader market momentum. Following the corrective Wave 4, it usually signals a resumption of an upward trend, often surpassing the previous highs established during Wave 3. The potential for fresh buying interest and accelerating price movement in Wave 5 strengthens the bullish outlook, especially when supported by increased trading volume and confirmation from technical indicators.
Consistent positive monthly returns from May to September further strengthen the bull case for the stock.
| Share Information | |
|---|---|
| Share Code | MSI |
| Industry | Technology Hardware & Equipment |
| Market Capital (USD) | 70.59 billion |
| One Year Total Return | 15.51% |
| Return Year-to-Date | -8.26% |
| Current Price (USD) | 4.23 |
| 52 Week High (USD) | 5.08 |
| 52 Week Low (USD) | 3.57 |
| Financial Year End | December |
| The price is clustering just below its 200-day simple moving average (SMA), which can be interpreted as a sign of underlying bullish support, especially if selling pressure is easing. Consolidation near a key long-term resistance level may suggest that buyers are accumulating in anticipation of a potential breakout. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 13.84 | 14.71 | 15.92 | 17.57 |
| Growth (%) | 6.31 | 8.18 | 10.39 | |
| Dividend Per Share (USD) | 4.03 | 4.14 | 4.30 | 4.52 |
| Growth (%) | 2.83 | 3.79 | 4.98 | |
| Forward PE (times) | 28.75 | 26.57 | 24.07 | |
| Forward Dividend Yield (%) | 0.98 | 1.02 | 1.07 | |
| High-single-digit growth is expected over FY25, with growth expected to pick up over the medium term. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view
| Share Name and Position | DECK US - Buy (Continue to hold) |
SW US - Buy (Continue to hold) |
PANW US - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 109.15 | 39.56 | 173.55 |
| Current | 128.84 | 45.94 | 194.48 |
| Movement | +18% | +16.1% | +12.1% |
|
A trough that is developing according to the Elliott wave theory remains of interest. Remains below its 200-day simple SMA.
Our profit target is maintained at $144, with a trailing stop-loss at $102. Exit the trade around 24 June 2025. |
A trough in the Elliott wave theory remains of interest. Remains below its 200-day SMA.
Our profit target remains at $49.00 with a trailing stop-loss at $42.00. Exit the trade around 20 August 2025. |
The recent trough in the stock's price continues to attract attention. Testing its 200-day SMA.
Our profit target remains at $228 with a trailing stop-loss at $152. Exit the trade around 25 June 2025. |
| Share Name and Position | LULU US - Buy (Continue to hold) |
CTAS - Buy (Continue to hold) |
|---|---|---|
| Entry | 310.61 | 205.84 |
| Current | 327.17 | 222.87 |
| Movement | +5.3% | +8.3% |
|
A developing Megaphone pattern remains of interest. Testing its 200-day simple moving average.
Our profit target is maintained at $388.00, with a trailing stop-loss at $297.00. Exit the trade around 13 August 2025. |
A bullish pennant pattern continues to attract attention. Remains above its 200-day simple moving average.
Our profit target is maintained at $241.00, with a trailing stop-loss at $209.00 Exit the trade around 25 June 2025. |
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