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On Thursday, TD Cowen’s analysts increased the price target for Axon Enterprise (NASDAQ:AXON) to $750.00, up from the previous $725.00, while reaffirming a Buy rating on the stock. The company, currently valued at $52.26 billion, has seen its stock surge nearly 93% over the past year, trading close to its 52-week high of $715.99. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, suggesting investors should carefully consider entry points. The analysts highlighted Axon’s impressive revenue growth, which surpassed expectations with a 31% increase, beating the Street’s forecast of 27% by $17 million. This aligns with the company’s strong track record, showing a 33.44% revenue growth in the last twelve months and maintaining an impressive gross profit margin of 59.64%. Additionally, the forecast for fiscal year 2025 was adjusted upward, with the midpoint of revenue growth expectations rising from 25% to 27% and the high-end reaching 30%, accompanied by a $50 million increase in projections. InvestingPro subscribers have access to 16 additional key insights about Axon’s financial health and growth prospects.
The firm’s positive momentum is partly attributed to the successful launch of Draft One and the AI Plan, both of which are expected to see very strong adoption throughout the year. Draft One has already featured in two of the top ten deals. Moreover, orders for the T10, Axon’s latest product, are reportedly pacing at twice the adoption rate of the previous T7 model and are currently limited by production capacity.
International markets have also shown significant engagement, with record bookings in the first quarter and growing enterprise pipelines. These factors have contributed to the analysts’ decision to raise the price target for Axon shares.
The company’s advancements and strategic initiatives, particularly in international expansion and new product adoption, signal a robust growth trajectory as reflected in the revised price target and maintained Buy rating by TD Cowen. Axon’s stock performance and future prospects remain a focus for investors following these recent developments. For a comprehensive understanding of Axon’s valuation and growth metrics, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which provides in-depth analysis of this and 1,400+ other top US stocks.
In other recent news, Axon Enterprise reported impressive first-quarter earnings for 2025, surpassing market expectations. The company achieved a non-GAAP earnings per share of $1.41, exceeding the consensus estimate of $1.30, and reported revenue of $604 million, which was above the anticipated $585.67 million. This represents a 31% year-over-year increase in revenue, marking the 13th consecutive quarter of double-digit growth. Analysts from JMP maintained their Market Outperform rating with a price target of $725, reflecting confidence in Axon’s continued strong performance. Raymond (NSE:RYMD) James also reaffirmed their positive outlook, maintaining an Outperform rating and a $645 price target, highlighting Axon’s annual recurring revenue growth and innovative product offerings.
Axon’s adjusted EBITDA rose by 43% year-over-year to $155.2 million, surpassing the consensus of $141.1 million. The company reported an annual recurring revenue of $1.1 billion, up 34% year-over-year, with subscription plan customers contributing 96% of the total revenue mix. Axon also launched new products, including real-time translation capabilities and ALPR cameras, which were well-received by customers. Despite a slight 2% decrease in future contracted bookings, the company remains optimistic, with international bookings exceeding expectations and significant growth anticipated in the second half of the year.
The company’s strategic focus on innovation and international expansion, along with strong product adoption rates, have been cited as key drivers of its financial success. Axon’s leadership highlighted a robust pipeline for the remainder of the fiscal year, with expectations of record annual bookings and continued investment in AI and product development. The company projects annual revenue growth of 27% for 2025, maintaining a 25% adjusted EBITDA margin target despite potential tariff impacts.
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