IonQ CRO Alameddine Rima sells $4.6m in shares
Investing.com - RBC Capital initiated coverage on Axon Enterprise (NASDAQ:AXON) with an Outperform rating and a price target of $860.00 on Monday. The target represents significant upside from the current price of $554.37, despite InvestingPro data indicating the stock is trading above its Fair Value. The company currently trades at a P/E ratio of 182, reflecting high growth expectations.
The research firm cited expectations for sustained revenue growth of over 25%, driven by cross-sell and up-sell opportunities within the U.S. state and local public safety market.
RBC Capital noted that continued penetration into emerging customer verticals, including Federal, Enterprise, and International markets, would further support Axon’s growth trajectory.
The firm also highlighted Axon’s expansion into new product categories with broad applicability beyond the public safety market as a growth driver.
RBC Capital expects Axon’s margins to benefit from higher-growth, higher-margin software offerings in the mid-term, which provide more predictable and profitable revenue streams while allowing for strategic investments in growth opportunities.
In other recent news, Axon Enterprise reported its third-quarter 2025 earnings, revealing mixed results. The company posted an earnings per share (EPS) of $1.17, which was below analysts’ expectations of $1.52, marking a negative surprise of 23.03%. However, Axon exceeded revenue forecasts, reporting $711 million compared to the anticipated $704.84 million. Following these results, CFRA upgraded Axon Enterprise from Buy to Strong Buy, despite reducing its price target to $785. TD Cowen reiterated its Buy rating with a price target of $925, citing strong revenue growth of 31% in the third quarter. Piper Sandler lowered its price target to $753 while maintaining an Overweight rating, noting the company’s results were roughly in line with expectations. Needham also maintained its Buy rating with a $870 price target, highlighting that Axon exceeded its revenue estimates. These developments reflect diverse analyst perspectives following Axon’s recent financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.