Goldman Sachs Reiterates Buy Rating On Motorola

According to Goldman Sachs, Motorola Solutions (NYSE: MSI) Buy rating is reiterated.

Goldman Sachs said that its discussions with investors reveal that they are focused most on (1) the company's capital allocation strategy and (2) fundamentals in the government business, which represents 65% of MSI's sales. “We view MSI as a very attractive business transformation investment post the separation from MMI, and reiterate our Buy rating. Most importantly, we believe the spilt sets the stage for a meaningful shift in capital allocation, with excess cash on the balance sheet and free cash flow being returned to shareholders rather than reinvested in the handset business.”

Motorola Solutions closed on Friday at $45.30.