Axon sinks after Northcoast downgrades on ‘lofty’ valuation

As previously reported, Northcoast this morning downgraded Axon (AXON) to Neutral from Buy. The firm sees a “lofty” valuation at current share levels and believes next week’s earnings report could miss expectations. As Axon reported higher sales growth, Northcoast continued to increase the stock’s price target pushing valuation metrics with them, but “no more,” the analyst tells investors in a research note. Further, the firm points out that Flock Safety is a “partner turned competitor” for plate readers, drones and real-time crime center technology. Over the medium-term, Flock could impact the growth trajectory of Axon’s recent Fusus acquisition, contends Northcoast. Shares of Axon are down 9% to $647.89 in afternoon trading.