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On Wednesday, BofA Securities analysts raised the price target for Axon Enterprise (NASDAQ: NASDAQ:AXON) stock to $895 from $750, while maintaining a Buy rating. This adjustment reflects the company’s sustained growth trajectory, as it reported its 13th consecutive quarter of over 25% growth. According to InvestingPro data, the stock appears overvalued relative to its Fair Value, despite impressive revenue growth of 32.71% in the last twelve months.
The analysts highlighted Axon Enterprise’s unique position in the market, noting its ability to operate in defensive markets while maintaining a growth stock revenue profile. Since April 4th, the company has rerated by approximately 49%, compared to the S&P 500’s increase of around 17%.
BofA Securities expressed confidence in Axon’s continued momentum, driven by new product deployment and adoption across various markets. The firm anticipates sustained opportunities for upgrades and federal support, which are expected to contribute to more than 20% year-over-year revenue growth through 2029.
The analysts’ decision to increase the price target is based on a 21x 2026 estimated enterprise value-to-sales ratio, up from the previous 18x. This new multiple implies a 1.4x relative multiple compared to high-growth peers, which remains unchanged.
In other recent news, Axon Enterprise reported its first-quarter earnings for 2025, exceeding analysts’ expectations with earnings per share of $1.41 and revenue of $604 million. This marks a 31% year-over-year revenue increase, continuing Axon’s streak of double-digit growth for the 13th consecutive quarter. Analysts from JMP maintained a Market Outperform rating with a price target of $725, highlighting Axon’s strong financial performance. TD Cowen also raised its price target for Axon twice, first to $750 and then to $800, citing impressive revenue growth and the company’s strategic initiatives in international markets and new product adoption.
Raymond (NSE:RYMD) James maintained an Outperform rating with a $645 price target, noting Axon’s Annual Recurring Revenue increase and strong adoption of new products like Draft One and AI Era. The firm’s future contracted bookings remained robust at $9.9 billion, despite a slight decrease. Axon’s advancements in the international market and the successful launch of new products, such as the TASER 10, have contributed to the company’s optimistic outlook and growth trajectory.
The company’s strategic focus on innovation and expanding its market presence is recognized as a key factor in its financial success. Axon’s leadership emphasized the importance of innovation and international market penetration as drivers for future growth. Despite potential challenges like tariff impacts, Axon remains confident in its ability to maintain its growth momentum, supported by a strong pipeline and continued investment in AI and new product development.
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