Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
Investing.com - TD Cowen has reiterated its Buy rating and $925.00 price target on Axon Enterprise (NASDAQ:AXON), citing confidence in the company’s growth prospects. The target represents potential upside from the current price of $771.10, with analyst targets ranging from $664.10 to $1,000.
The firm’s analysis follows a recent investor meeting with Axon management in Boston last week, where discussions covered expansion drivers, AI initiatives, drones, TASER products, body cameras, international growth, and enterprise solutions. The company’s impressive 32.41% revenue growth and 60.58% gross margins support management’s expansion strategy.
TD Cowen noted that Axon recently delivered strong second-quarter results with significant beats and raised guidance, yet the stock has pulled back approximately 13% since the earnings announcement. InvestingPro data shows the stock has declined 7.87% in the past week, though it maintains a strong 26.91% gain year-to-date.
The research firm attributed the stock decline to overall software sector de-grossing rather than company-specific issues, maintaining its price target based on a 19x EV/CY27E Sales multiple and 0.92x EV/Sales/Growth ratio. According to InvestingPro analysis, the stock appears overvalued at current levels, trading at a P/E ratio of 181.33x.
Axon Enterprise remains a top pick for TD Cowen, which expressed increased confidence in the company’s numerous growth drivers and suggested the recent pullback presents a favorable entry point for investors. Get access to 15+ additional InvestingPro Tips and comprehensive financial analysis for Axon and 1,400+ other stocks with InvestingPro.
In other recent news, Axon Enterprise has reported strong quarterly performance, leading several analysts to adjust their price targets for the company. TD Cowen raised its price target to $925, highlighting Axon’s 33% revenue growth, which surpassed Wall Street’s expectations by 4.4 percentage points. Similarly, Raymond (NSE:RYMD) James increased its target to $855, noting the company’s strong Q2 results and impressive order volume, with management forecasting record orders for the second half of the year. Needham also raised its price target to $870, citing strong AI bookings and revenue that exceeded estimates by 420 basis points.
Additionally, Craig-Hallum upgraded Axon Enterprise from Hold to Buy, setting a new price target of $900 following impressive Q2 results, including reaccelerated bookings and Annual Recurring Revenue growth. BofA Securities increased its price target to $1,000, emphasizing strengthening momentum across Axon’s business segments. These recent developments indicate a positive outlook from multiple analyst firms, reflecting confidence in Axon’s continued growth trajectory.
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