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Motorola Signs Agreement to Acquire Openpath; Street Says Buy
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Motorola Signs Agreement to Acquire Openpath; Street Says Buy

Data communications and telecom equipment provider Motorola Solutions, Inc. (MSI) announced that it has entered into a definitive agreement to acquire cloud-based mobile access control provider Openpath Security. The financial terms of the deal have been kept under wraps.

Following the news release, shares of the company declined marginally to close at $222.20 in Tuesday’s trading session.

With this buyout, Motorola will gain control over Openpath’s leading access control systems. The deal will also help Motorola provide its customers a more secure and seamless security solution experience.

CEO of Motorola Greg Brown said, “This acquisition enables us to combine the power of video security and access control together, providing unprecedented situational awareness, where every physical entry and exit is authenticated and recorded with access control and video.” (See Motorola stock chart on TipRanks)

Recently, Jefferies analyst George Notter reiterated a Buy rating on the stock. The analyst, however, raised the price target from $230 to $260, which implies upside potential of 17% from current levels.

The analyst said, “Our analysis of fiscal 2022 budgets across 15 of the largest cities in the U.S. supports the company’s view that their Public Safety LMR business will grow in the mid-single digits. Moreover, we think city budgets are well-positioned for actual fiscal 2022 spending to come in ahead of initial proposals. We believe MSI’s 2021E revenue guidance of 8-9% Y/Y appears very beatable.”

Consensus among analysts is a Strong Buy based on 5 Buys and 1 Hold. The average Motorola price target of $244.17 implies upside potential of 9.9% from current levels.

Shares of the company have gained 67.1% over the past year.

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