In a report released yesterday, Jordan Lyonnais from Bank of America Securities maintained a Buy rating on Axon Enterprise (AXON – Research Report), with a price target of $750.00.
Jordan Lyonnais has given his Buy rating due to a combination of factors. Axon Enterprise’s recent financial performance has been impressive, with a reported 34% year-over-year revenue growth for the fourth quarter of 2024, surpassing both Bank of America’s and Bloomberg’s estimates. This growth was largely driven by a significant increase in Cloud & Services revenue, which rose by 41% year-over-year, highlighting the company’s successful expansion in this segment.
Furthermore, Axon’s 2025 outlook is promising, with projected revenue growth of 25% and an adjusted EBITDA margin of 25.2% at the midpoint. The company’s annual recurring revenue is expected to rise by 37% year-over-year, and future contracted revenue has increased by 42%, indicating strong demand and a robust pipeline. These factors, combined with Axon’s ability to capture enduring demand across its segments, underpin Lyonnais’s confidence in maintaining a Buy rating.