KOSIV, UKRAINE - 2018/12/02: In this photo illustration, the Motorola Solutions Data communication ... [+] company logo seen displayed on a smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)
LightRocket via Getty Images
Up 40% since March, we believe Motorola Solutions stock (NYSE: MSI) has potential downside of around 15% from its current levels. The company sells data communication and telecommunication equipment and its stock trades at $174 currently, around 5% higher than the level it was at in the start of 2020.
It traded at $186 in February 2020 – just before the outbreak of coronavirus – and is currently only 6% below that level. While services revenue came in slightly higher in Q3 2020 vs Q3 2019, product revenue dropped to $1.04 billion from $1.2 billion over the same period. With industrial demand still not back to pre-Covid levels and with the pandemic slowing down the global roll-out of 5G, we believe the stock could drop around 15% from $174 to below $150. Our conclusion is based on our comparative analysis of Motorola Solutions stock performance during the current crisis with that during the 2008 recession in our interactive dashboard.
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