Gold bars to be exempt from tariffs, White House clarifies
Investing.com - UBS initiated coverage on Axon Enterprise (NASDAQ:AXON) with a Neutral rating and a price target of $820.00 on Wednesday. The company, currently trading at a P/E ratio of 180x and maintaining a "GOOD" financial health score according to InvestingPro, has shown impressive performance with its stock up over 133% in the past year.
The research firm cited balanced risk/reward for the law enforcement technology company, noting that the current stock price already reflects Axon’s strong growth prospects.
UBS highlighted Axon’s exceptional revenue growth of over 20% annually for the past decade, with a five-year compound annual growth rate of 31% reaching $2.1 billion in fiscal 2024.
Despite Axon’s larger revenue base, UBS projects 21% growth over the next five years as the company continues scaling its U.S. and international public safety businesses, capitalizes on the potentially larger enterprise market, and grows emerging technology businesses including drones.
UBS analysts believe Axon has strong market share in the U.S. but still has substantial upside potential in moving existing customers to premium subscription plans, while accelerated international adoption or new enterprise contracts would be upside catalysts for the stock.
In other recent news, Axon Enterprise has reported notable financial results and received several analyst updates. The company achieved a 31% year-over-year revenue increase in the first quarter, surpassing the anticipated $587 million with actual revenue of $603.6 million. Non-GAAP earnings per share also exceeded expectations, reaching $1.41 compared to the consensus estimate of $1.30. Analysts from BofA Securities raised Axon’s stock price target to $895, citing the company’s sustained growth trajectory and new product deployment. Similarly, TD Cowen increased their price target to $800, maintaining a Buy rating and emphasizing Axon’s strong first-quarter performance and growth potential. Raymond (NSE:RYMD) James maintained a $645 target, highlighting Axon’s Annual Recurring Revenue growth and robust international bookings. JMP analysts kept their price target at $725 following Axon’s impressive first-quarter earnings, which also included a 43% year-over-year rise in adjusted EBITDA. These developments reflect a broad confidence in Axon’s financial health and strategic initiatives among analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.