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On Friday, Barclays (LON:BARC) analyst Tim Long maintained an Overweight rating on Axon Enterprise (NASDAQ:AXON) with a steady price target of $585.00. According to InvestingPro data, the stock has experienced a significant 20.7% decline over the past week, despite showing impressive 105.4% returns over the last year. Long’s commentary focused on the company’s revenue projections, which align with the December quarter Street estimates of $567 million and are slightly below the March quarter Street estimates of $576 million.
Axon Enterprise, known for its advanced law enforcement technologies, including TASER devices and various AI solutions, is expected to draw investor attention to the demand environment and the interest in products like TASER 10 and the AI ERA Plan. The company maintains strong financial fundamentals, with InvestingPro showing impressive gross profit margins of 59.75% and robust revenue growth of 32.3% in the last twelve months. With the recent change to the Trump administration, there is particular interest in how federal dealings and potential tariff impacts might affect the company.
Long anticipates that Axon’s federal business, which is currently estimated to be less than 10% of total revenue, will not experience significant changes due to Trump administration policies. The company’s focus on public safety modernization and next-generation offerings is expected to potentially increase its federal revenue share in FY25.
Investors are also looking at the future contracted revenue metric, especially after seasonal underperformance in the last two quarters. Long expressed interest in the progress of DraftOne and the AI ERA Plan, evaluating their alignment with internal expectations and their potential to become significant contributors to Axon’s software growth in the future.
Furthermore, while drones are seen as a longer-term opportunity, updates on the development of Axon’s drone portfolio, its Directed Energy Recovery (NASDAQ:ERII) (DFR) efforts, and exploration of new use cases within public and national security sectors are anticipated. With analyst targets ranging from $413 to $800 and an overall "GOOD" financial health score according to InvestingPro, investors seeking deeper insights can access comprehensive Pro Research Reports covering 1,400+ top stocks, including detailed analysis of Axon’s growth trajectory and market position.
In other recent news, Axon Enterprise has been the subject of various analyst evaluations and strategic updates. Goldman Sachs raised its price target for Axon to $700, maintaining a Buy rating, citing strong fourth-quarter earnings projections and a robust order pipeline, including a significant deal with the Royal Canadian Mounted Police. Similarly, TD Cowen has reaffirmed a Buy rating with a $700 target, highlighting Axon’s competitive advantages and expected strong fourth-quarter bookings. Meanwhile, Craig-Hallum has downgraded Axon from Buy to Hold, despite raising the price target to $625, due to concerns over valuation after a substantial stock rally.
JMP Securities has increased its price target to $725, retaining a Market Outperform rating, and noted Axon’s potential growth through innovative product offerings like the AI Era Plan bundle. The firm also pointed out the growing demand for Axon’s counter-drone solutions, which could further solidify its market position. Axon’s recent decision to end its partnership with Flock Safety has been seen as a strategic move, potentially enhancing its competitive stance through the integration of Fusus technology. These developments reflect a mix of optimism and caution among analysts regarding Axon’s financial outlook and strategic direction.
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