UPDATE: Goldman Sachs Initiates Motorola Solutions at Buy

Goldman Sachs is out with its report today on Motorola Solutions (NYSE: MSI), initiating MSI at Buy.

In a note to clients, Goldman Sachs writes, "We initiate coverage of Motorola Solutions with a Buy rating and a 12-month target of $57, implying over 20% upside. We view the recent split from MMI as an important event that should provide much greater clarity on MSI's strong and sustainable lead in mission critical voice technology, as well as its robust business model (50% GM, 16%-18% OM, and FCF yield of 7.5%). Most importantly, MSI is now in a stronger position to enhance shareholder returns through better capital allocation post split. Specifically, Motorola Solutions is over-capitalized (net cash of $4.5 bn, or 28% of its market cap), generates OCF of $1 bn annually, and no longer needs to support MMI."

Shares of MSI closed Monday at $46.15, down 1.35% from Friday's close.