Morgan Stanley Reiterates Equal-Weight Rating on Motorola Solutions Ahead of Q213 Results

In a report published Thursday, Morgan Stanley analyst Ehud Gelblum reiterated an Equal-Weight rating on Motorola Solutions (NYSE: MSI).

In the report, Morgan Stanley noted, “We believe that Motorola Solutions' highly profitable LMR business model is sustainable for a long time (i.e., 10+ years) and that spending on public safety is strong. While we are encouraged longer-term by the prospects of spending on next-generation LTE public safety networks, we fear that expectations for an LTE revenue ramp are premature. We are not expecting significant LTE revenue until 2015 and we believe competition in the public safety LTE market is likely to be more forceful than in LMR. The 2H'13 re-acceleration in the enterprise business may not factor in secular headwinds such as enterprise adoption of consumer mobile devices and product cycle obstacles.”

Motorola Solutions closed on Wednesday at $59.42.