Praxis Precision Medicines general counsel sells $4.8m in shares
Investing.com - CFRA has upgraded Axon Enterprise (NASDAQ:AXON) from Buy to Strong Buy while simultaneously reducing its price target to $785 from $992. The upgrade comes as InvestingPro data shows the stock has fallen nearly 20% in just the past week and is currently trading at $588.36, significantly below its 52-week high of $885.91.
The research firm lowered its 12-month target by $207, representing 79.0x CFRA’s 2027 EPS estimate, which is a discount to AXON’s trailing 12-month average forward P/E of 108.5x but aligns with peer valuations. According to InvestingPro data, Axon currently trades at a P/E ratio of 177.6x, confirming the stock’s premium valuation despite recent declines.
CFRA reduced its EPS estimates following Axon’s Q3 adjusted earnings miss, lowering projections to $6.32 for 2025, $7.79 for 2026, and $9.94 for 2027, despite management raising full-year 2025 revenue guidance to approximately $2.74 billion, representing 31% growth. InvestingPro data shows Axon’s actual revenue growth rate stands at 32% for the last twelve months, with the company reporting diluted EPS of $3.13.
The firm highlighted Axon’s $625 million Carbyne acquisition, which combined with Prepared creates the Axon 911 platform and expands the company’s total addressable market by $5 billion, while international momentum accelerated with a significant European cloud deal. The acquisition is supported by Axon’s strong financial position, with InvestingPro data revealing a healthy current ratio of 3.12 and more cash than debt on its balance sheet.
Annual recurring revenue grew 41% year-over-year to $1.3 billion with 124% net revenue retention, leading CFRA to view the recent selloff as a buying opportunity despite near-term margin pressures from tariffs and investments. InvestingPro analysis indicates the stock is currently overvalued compared to its Fair Value, despite impressive gross profit margins of 60.4%. InvestingPro has identified 17 additional investment tips for Axon, available in the comprehensive Pro Research Report covering this high-growth security technology leader.
In other recent news, Axon Enterprise reported mixed financial results for the third quarter of 2025. The company posted an earnings per share of $1.17, falling short of analysts’ expectations of $1.52, which was a negative surprise of 23.03%. However, Axon exceeded revenue forecasts, achieving $711 million compared to the anticipated $704.84 million, marking a positive surprise of 0.87%. TD Cowen reiterated a Buy rating on Axon, noting strong revenue growth of 31% in the third quarter, although this was a smaller beat than usual. Needham also maintained a Buy rating, with a price target of $870, highlighting that Axon exceeded their revenue estimates by 240 basis points. Meanwhile, Piper Sandler lowered its price target for Axon to $753, maintaining an Overweight rating, citing the company’s performance in line with expectations as a reason for the adjustment. These developments reflect a period of reassessment by analysts following the company’s latest earnings report.
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