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Investing.com - TD Cowen raised its price target on Axon Enterprise (NASDAQ:AXON) to $825 from $800 on Friday, maintaining a Buy rating ahead of the company’s August 4 earnings report. The company, now valued at $57.2 billion, has demonstrated robust financial performance with revenue growth of 32.7% over the last twelve months, according to InvestingPro data.
The research firm expects Axon to deliver strong quarterly results, exceeding TD Cowen’s estimated 28% revenue growth. The firm has increased its full-year growth forecast from 27% to approximately 29% at the midpoint. InvestingPro analysis reveals impressive gross profit margins of 60.6%, with 16 additional key insights available to subscribers through the comprehensive Pro Research Report.
TD Cowen’s sales headcount tracker shows a positive uptick for Axon, and the firm views the current entry point as attractive following a 15% pullback from recent highs. The stock remains TD Cowen’s top pick in the sector.
Axon shares have gained 17% year-to-date and are up 40% from April lows, though they remain 15% below their recent peak. The company currently trades at approximately 17.8x EV/CY26E Sales.
TD Cowen justifies Axon’s premium valuation, citing its durable end markets, high growth profile, artificial intelligence product cycle, limited competition, and strong competitive moat. The new $825 price target represents approximately 20.5x EV/CY26E Sales.
In other recent news, Axon Enterprise has seen a series of analyst updates that highlight its strong financial performance and growth prospects. BofA Securities raised its price target for Axon Enterprise to $895, citing the company’s impressive record of 13 consecutive quarters with over 25% revenue growth. TD Cowen also adjusted its price target to $800, maintaining a Buy rating, following a conference where Axon’s President discussed the company’s growth strategies and product innovations.
Additionally, TD Cowen previously raised the price target to $750, noting Axon’s revenue growth exceeded expectations by $17 million, with an upward revision in fiscal year 2025 revenue growth forecasts. Needham increased its price target to $820, maintaining a Buy rating, after discussions with law enforcement officials about technology adoption. UBS initiated coverage with a Neutral rating and a price target of $820, indicating a balanced risk/reward scenario for investors.
These developments reflect a positive outlook from analysts, emphasizing Axon’s continued growth and strategic positioning in the market.
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