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Investing.com - TD Cowen raised its price target on Axon Enterprise (NASDAQ:AXON) to $925 from $825 on Tuesday, while maintaining a Buy rating on the stock. The new target represents potential upside from the current price of $858.49, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The firm cited Axon’s strong quarterly performance, which included revenue growth of 33%, exceeding Wall Street expectations of 27% growth by 4.4 percentage points. This outperformance was stronger than the previous quarter’s 3% beat. The company maintains impressive gross profit margins of 60.6% and has delivered a remarkable 160.3% return over the past year.
Axon has raised its full-year 2025 revenue growth guidance from 27% to 29% at the midpoint, with the high end of guidance now at 31%. Bookings grew by 46%, including what TD Cowen described as the largest deal in company history.
Management now expects full-year bookings growth in the high-30s percentage range. The company’s AI Era plan adoption is accelerating and drove $150 million of bookings, while TASER 10 demand continues to show strong momentum.
TD Cowen also noted that the corrections market, which is newer for Axon, was represented in two of the company’s top ten deals.
In other recent news, Axon Enterprise reported strong financial results for the second quarter of 2025, with earnings and revenue exceeding expectations. The company achieved non-GAAP earnings per share of $2.12, significantly surpassing the consensus estimate of $1.44. Revenue reached $668.5 million, marking a 33% increase from the previous year and exceeding forecasts of $641.0 million. Analysts have responded positively to these results, with Raymond (NSE:RYMD) James raising its price target for Axon Enterprise to $855 while maintaining an Outperform rating. Needham also increased its price target to $870, highlighting strong AI bookings and a solid quarterly performance. Additionally, Citizens JMP reiterated a Market Outperform rating with a price target of $825. Axon’s management has guided for a record second half, with estimated orders of approximately $5 billion or more. These developments reflect the company’s strong performance across both new and existing products.
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