Goldman Sachs analyst Mike Ng reiterated a Buy rating on Axon Enterprise (AXON – Research Report) yesterday and set a price target of $700.00.
Mike Ng has given his Buy rating due to a combination of factors including Axon Enterprise’s impressive financial performance and strong growth prospects. The company reported a significant increase in its fourth-quarter EBITDA, surpassing consensus estimates, with substantial revenue growth driven by its Cloud & Services and TASER segments. These areas each experienced over 35% year-over-year growth, contributing to improved EBITDA margins through production automation and cost reduction initiatives.
Furthermore, Axon Enterprise’s future contracted bookings have shown robust growth, with notable momentum in international and enterprise sectors. The company has also raised its revenue outlook for 2025, projecting a 25% growth at the midpoint, while maintaining a target of 25% adjusted EBITDA margin. Despite concerns about the dissolution of a partnership, Axon expects no material impact on revenue and is working to restore the agreement. These factors collectively provide high visibility into Axon’s business trajectory, supporting the Buy rating.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $725.00 price target.
Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AXON in relation to earlier this year.