Motorola Is Looking For Solutions: On Anemic Growth, Stock Looks 34% Overvalued
- Management expects the government division, which expanded at a meager 1% in 2013 and declined sharply in 1Q14, to contract by low to mid single digits this year.
- Management has set an operating margin goal for 2014 that seems to be too aggressive. We expect EPS could fall short of current consensus expectations by 10%.
- Ex-cash 2015 P/E of the going-concern vs. the industry median multiple suggests MSI could be 34% overvalued.