Group 1: Cisco and Arista Networks - Morgan Stanley predicts that Cisco Systems (CSCO.US) and Arista Networks (ANET.US) will perform well in 2026 due to the ongoing construction of AI infrastructure and the expansion of Ethernet technology market share [1] - Cisco's stock price is expected to rise driven by opportunities from sovereign nations and optical business, with a target price increase from $82 to $91 [3] - Arista's market sentiment has become particularly pessimistic, but opportunities may become clearer following the release of Q1 earnings and the initiation of first deployments, potentially reversing the negative outlook [3] Group 2: Motorola Solutions - Motorola Solutions (MSI) has seen a 20% decline in stock price this year, attributed to concerns over a government shutdown, which lasted 43 days [4] - Morgan Stanley upgraded Motorola's rating from "hold" to "overweight," despite a slight target price decrease from $471 to $436, viewing the sell-off as excessive and identifying an attractive entry point [4] Group 3: Other Companies in Optical Devices - Morgan Stanley expects Corning (GLW.US), Ciena (CIEN.US), Lumentum Holdings (LITE.US), and Coherent (COHR.US) to outperform the market in 2026, driven by investments in lasers and optical devices [5] - Target prices for these companies have been adjusted: Corning from $82 to $98, Ciena from $195 to $213, Lumentum from $190 to $304, and Coherent from $150 to $180 [6]

Market Overview - The Law Enforcement Software Market was valued at USD 18.86 billion in 2025 and is projected to reach USD 40.82 billion by 2033, growing at a CAGR of 10.13% from 2026 to 2033 [1]. Growth Drivers - The expanding use of digital tools for public safety management, crime prevention, and investigation is driving growth in the law enforcement software market [2]. - The adoption of automated platforms and digital technologies is enhancing operational efficiency in police and public safety organizations [4]. Market Segmentation By Component - The solutions segment dominated the market with over 68.25% market share in 2025, driven by the need for operational efficiency and advanced tools [5]. - The services segment is expected to grow at the highest CAGR of 10.57% during the forecast period due to the demand for continuous support and training [5]. By Deployment - The cloud segment represented more than 71.48% of the market share in 2025, favored for its scalability, cost-efficiency, and accessibility [7]. - The on-premises segment is anticipated to grow at a CAGR of over 10.63%, offering customizable solutions for agencies [7]. Regional Insights - North America accounted for more than 36.23% of the law enforcement software market in 2023, integrating advanced technologies like AI and Big Data analytics [8]. - The Asia Pacific region is experiencing the highest growth rate with a CAGR of over 12.25% from 2026 to 2033, driven by urbanization and demand for advanced public safety solutions [9]. Key Players and Developments - Notable companies in the market include Axon, Motorola Solutions, Tyler Technologies, IBM, and Oracle, among others [12]. - Recent developments include Axon's introduction of new AI-powered tools and Oracle's enhancements to its Public Safety Suite with officer-worn cameras and real-time analytics [12].

Core Insights - The Mairs & Power Balanced Fund reported a return of 6.47% in the first nine months of 2025, underperforming benchmark indexes which increased by 11.35% and 10.73% respectively [1] - The market remains concentrated with a few mega-cap stocks, particularly in the AI sector, driving most favorable outcomes [1] Fund Performance - The fund's performance lagged behind the S&P 500 Total Return Index and the Bloomberg U.S. Government/Credit Bond Index [1] - The fund's top five holdings are highlighted as key picks for 2025 [1] Motorola Solutions, Inc. (NYSE:MSI) - Motorola Solutions, Inc. experienced a one-month return of -3.14% and a 52-week decline of 21.66%, closing at $368.05 with a market cap of $61.319 billion on December 11, 2025 [2] - The Information Technology sector was a significant contributor to the fund's underperformance, with Motorola Solutions among the underperforming technology stocks [3] - Despite positive underlying results for Motorola Solutions, concerns over an acquisition diluting earnings and tariff headwinds negatively impacted its performance [3] Hedge Fund Interest - Motorola Solutions is not among the 30 most popular stocks among hedge funds, with 51 hedge fund portfolios holding the stock at the end of Q3 2025, down from 55 in the previous quarter [4] - There is a belief that certain AI stocks present greater upside potential and lower downside risk compared to Motorola Solutions [4]

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Summary of Motorola Solutions FY Conference Call Company Overview - **Company**: Motorola Solutions (NYSE: MSI) - **Date of Conference**: December 11, 2025 Key Points Industry and Business Segments - **LMR (Land Mobile Radio) Business**: - The LMR business is expected to grow at a mid-single-digit rate overall, with a strong transition towards a services-attached software model [16][18][20] - The addition of Silvus has improved the growth profile of the LMR business [19] - Infrastructure segment is valued at less than $2 billion, with significant opportunities for upgrades from customers [20] - Devices segment is approximately $2.5 billion, with a focus on the APX NEXT radio, which has seen strong adoption [21] Financial Performance and Growth - **Funding Environment**: - The state and local business is approximately $5 billion, with a diverse customer base making around 20,000 purchase orders annually [34][35] - Expected double-digit growth in both products and services for Q4 [36] - Federal business accounts for about 9% of revenues, with potential growth from new funding sources [41] Silvus Acquisition - **Silvus Overview**: - Silvus has achieved $500 million in annual revenue with 45% EBITDA margins [45] - The technology focuses on mobile ad hoc networks (MANET) for mission-critical applications [45] - The total addressable market (TAM) for Silvus is estimated at $3 billion, expected to double in the next four to five years [51] Product Innovations - **APX NEXT Transition**: - The transition to APX NEXT is ongoing, with expectations to increase from 200,000 to 300,000 subscribers by the end of the next year [21][56] - The introduction of the SVX device is expected to enhance the value proposition and drive further adoption of APX NEXT [57] Video and Command Center Software - **Video Business**: - The video business is projected to grow at 10%-12% annually, with a strong focus on software and services [60] - Transitioning customers from on-premise to cloud solutions is a key growth driver [61] - **Command Center Software**: - The command center software business is growing at 12%, with a focus on integrating various modules into PSAPs [74] - Motorola is in over 60% of the 6,000 911 centers in the U.S. [72] Capital Return and M&A Strategy - **Financial Strategy**: - Motorola Solutions has a strong balance sheet, allowing for continued M&A activity and capital returns through buybacks and dividends [75] - The company is on track to buy back over $1 billion in stock this year [76] Conclusion - Motorola Solutions is positioned for steady growth across its LMR, video, and command center software segments, with strategic acquisitions like Silvus enhancing its market presence and technological capabilities. The company is optimistic about its funding environment and customer engagement, setting a positive outlook for the upcoming fiscal year.

Core Insights - Motorola Solutions and Google have launched a new feature allowing Android users to share live video with 911 call handlers, enhancing emergency response capabilities [1][2] Group 1: Integration and Functionality - The integration of Android Emergency Live Video with Motorola Solutions' 911 command center software enables users to share live video with a single click, significantly reducing the time taken to provide visual context during emergencies [1][2] - This new feature streamlines the previous multi-step process of sharing video, which often delayed critical response times [2] - The live video stream integrates with Motorola's VESTA 911 and VESTA NXT software, providing dispatchers with better information to inform responders on the scene [3] Group 2: Privacy and User Control - The feature is designed with privacy in mind, allowing agencies to set incoming videos to blur by default, which can be unblurred as necessary by call handlers [3] - Android users have control over their video sharing, with the ability to stop the stream at any time without affecting the audio connection of the 911 call [4] - The video sharing feature is encrypted by default, ensuring user privacy and security [4]

Group 1 - Motorola Solutions, Inc. (NYSE:MSI) is rated a consensus Buy by analysts, with a one-year median price target of $510, indicating a potential upside of nearly 36% [1] - Analysts from Bank of America Securities and William Blair reaffirmed their Buy ratings, citing the company's solid market position and growth potential despite recent stock performance lagging behind the broader market [2][4] - The company is expected to benefit from government initiatives in customs and border defense, which will positively impact its performance in upcoming quarters [3] Group 2 - The Silvus acquisition, new product line adoption, and favorable valuation contribute to the positive outlook for Motorola Solutions, even as the Land Mobile Radio (LMR) segment shows declining growth [4] - Motorola Solutions operates in public safety and enterprise security solutions, structured into two segments: Products and Systems Integration, and Software and Services [5]

Group 1 - Motorola Solutions, Inc. (NYSE:MSI) has received positive analyst ratings, with Keith Housum upgrading the stock from Hold to Buy with a price target of $450, and Tomer Zilberman reiterating a Buy rating with a target of $520, indicating a 37.27% upside potential from the current level [1][2] - The company reported a quarterly revenue growth of 7.85% year-over-year, reaching $3.01 billion, exceeding estimates by $20.2 million, with an EPS of $4.06, surpassing consensus by $0.21 [2] - The sales growth was driven by a 6% increase in Products and Systems Integration and an 11% increase in Software and Services sales, alongside a record order backlog of $14.6 billion, up $467 million from the previous year [2][3] Group 2 - Despite a 13% decline in share price since the Q3 2025 earnings release, analysts maintain a bullish outlook on the stock due to emerging demand opportunities [1][3] - The Land Mobile Radio segment is expected to recover from recent growth deceleration, with a 10% increase in order levels, benefiting from strong demand and government funding [3] - Motorola Solutions provides mission-critical communications and public safety technology, including land mobile radios, command center software, and video security solutions for government and commercial customers [4]

Core Insights - The U.S. Department of Defense has added Silvus Technologies' StreamCaster 4400 Enhanced (SC4400E) mobile ad-hoc network radio to its Blue UAS Framework, which certifies technologies for military unmanned aircraft systems [1] - The SC4400E has also been certified by the Association of Uncrewed Vehicle Systems International (AUVSI) as part of its Green UAS Cleared Components list, meeting stringent cybersecurity and supply chain standards [1][2] Group 1 - The SC4400E MANET radio is designed for secure, mission-critical connectivity in challenging environments, enhancing Silvus' reputation in command and control and mesh networking solutions for unmanned operations [2] - The radio utilizes Silvus' proprietary Mobile Networked MIMO waveform to create a scalable mesh network capable of linking hundreds of nodes, facilitating high-bandwidth data transmission [2][3] - The SC4400E includes advanced electronic warfare capabilities such as Low Probability of Intercept/Low Probability of Detection, Anti-Jamming, and Advanced Threat Protection, ensuring secure communications even under electromagnetic attack [3] Group 2 - The SC4400E is compliant with the National Defense Authorization Act and joins other Silvus radios on the Blue UAS Framework and Green UAS Cleared Components list, including the StreamCaster SC4200EP and StreamCaster LITE series [4] - Silvus Technologies, a subsidiary of Motorola Solutions, specializes in advanced MANET and MIMO communications systems, providing critical communication links for defense and public safety in demanding operational environments [5]

Core Viewpoint - The comparison between Ericsson (ERIC) and Motorola (MSI) indicates that ERIC currently offers better value for investors based on various financial metrics and analyst outlooks [1][3][7]. Valuation Metrics - Ericsson has a forward P/E ratio of 13.15, significantly lower than Motorola's forward P/E of 24.76 [5]. - The PEG ratio for Ericsson is 1.56, while Motorola's PEG ratio stands at 2.73, suggesting that Ericsson is more reasonably priced relative to its expected earnings growth [5]. - Ericsson's P/B ratio is 2.95, compared to Motorola's P/B of 26.6, indicating a more favorable market value versus book value for Ericsson [6]. Analyst Outlook - Ericsson holds a Zacks Rank of 2 (Buy), reflecting stronger earnings estimate revisions compared to Motorola, which has a Zacks Rank of 3 (Hold) [3][7]. - The improving analyst outlook for Ericsson suggests a more positive sentiment among analysts regarding its future performance [3]. Value Grades - Based on the analysis of various financial metrics, Ericsson has been assigned a Value grade of A, while Motorola has a Value grade of D, further supporting the conclusion that Ericsson is the superior investment option at this time [6].