Needham analyst Joshua Reilly has maintained their bullish stance on AXON stock, giving a Buy rating today.
Joshua Reilly has given his Buy rating due to a combination of factors that highlight Axon Enterprise’s strong market position and growth potential. The company reported impressive fourth-quarter results, showcasing a substantial contracted backlog of $10.1 billion, which has been adjusted to consider contracts with cancellation options. This backlog indicates robust demand and a solid foundation for future revenue.
Furthermore, Axon has set an ambitious revenue growth target for fiscal year 2025, with a midpoint of 25%, surpassing market expectations. The company’s consistent growth across all product categories, including TASER, Sensors & Other, and Axon Cloud, further supports its positive outlook. Despite concerns regarding the Flock Safety partnership, management’s assurance suggests minimal impact on their Fleet 3 ALPR product, and there is optimism about entering the fixed LPR market with fewer limitations. Additionally, stable trends in the US Federal market are expected to contribute to another strong year for Axon.
Reilly covers the Technology sector, focusing on stocks such as Verint Systems, Tyler Technologies, and Paycom. According to TipRanks, Reilly has an average return of 6.4% and a 47.50% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $700.00 price target.