Analyst Andrew Sherman from TD Cowen reiterated a Buy rating on Axon Enterprise (AXON – Research Report) and increased the price target to $725.00 from $700.00.
Andrew Sherman has given his Buy rating due to a combination of factors that highlight Axon Enterprise’s strong financial performance and growth potential. The company reported a significant beat in Q4 earnings and provided a robust revenue growth guidance for FY25, which is 25% above the Street’s expectations. Sherman believes this guidance is conservative and anticipates actual growth to reach 30-35% on a $2 billion-plus base.
Additionally, Axon Enterprise has shown impressive performance in new markets, particularly in Enterprise and International sectors, with notable deals and bookings growth. The AI Era plan has already closed ten deals, indicating strong adoption prospects. Sherman’s confidence is further bolstered by management’s ability to address previous concerns, such as the Flock partnership and federal exposure, and the company’s attractive valuation at 14x EV/CY26E Sales. These factors collectively support the Buy rating and the increased price target from $700 to $725.
In another report released on February 21, Barclays also maintained a Buy rating on the stock with a $585.00 price target.