DoD tests AI models that make it easy to switch from vendors like Palantir
On Tuesday, JMP Securities analyst Trevor Walsh increased the price target for Axon Enterprise stock on (NASDAQ:AXON) to $725 from the previous $610. The firm sustained its Market Outperform rating on the stock, signaling confidence in the company’s growth trajectory. Currently trading at $658.11, Axon has demonstrated remarkable momentum with a 156% return over the past year. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $385 to $800. Walsh highlighted the effectiveness of Axon’s products in enhancing police officer efficiency and the potential for significant time savings, particularly through the company’s software solutions.
Axon Enterprise is expected to further leverage its product narrative in 2025 with the introduction of the AI Era Plan bundle, which represents a $1.8 billion opportunity according to the analyst. This new offering is anticipated to strengthen Axon’s market position and capitalize on emerging trends within the industry.
The analyst also noted the growing demand for counter-unmanned aerial system (C-UAS) and counter-drone solutions, which have applications in public safety, critical infrastructure, and military/defense sectors. This increased focus on aerial security is seen as a response to the evolving needs of these domains.
Moreover, the value of drone-as-a-first responder (DFR) programs was emphasized as a significant asset for public safety organizations. DFR programs are considered a force multiplier, providing a strategic advantage in the context of ongoing recruitment and retention challenges faced by these organizations.
In summary, JMP Securities’ revised price target reflects a bullish outlook on Axon’s prospects, driven by strong sales performance, innovative product offerings, and the company’s strategic positioning to address current and future market needs in the public safety and defense sectors. InvestingPro analysis reveals the company maintains a "GREAT" financial health score, with 20+ additional investment insights available to subscribers through their comprehensive Pro Research Report.
In other recent news, Axon Enterprise has been the subject of significant attention from a number of financial firms. Goldman Sachs analyst Michael Ng has raised the target price for Axon to $700, maintaining a Buy rating on the company. Ng’s analysis suggests that Axon is expected to report a robust $148 million in EBITDA for the fourth quarter of 2024, a figure above the consensus estimate. TD Cowen initiated coverage with a Buy rating, citing Axon’s robust market position and the potential for strong Q4 bookings. Raymond (NSE:RYMD) James analyst Brian Gesuale revised the price target for Axon to $645, seeing the recent 20% stock correction as a buying opportunity. Baird raised its stock price target for Axon to $800, highlighting the company’s growth prospects in artificial intelligence. Lastly, Morgan Stanley (NYSE:MS) upgraded Axon’s stock from Equalweight to Overweight and increased the price target to $700. These recent developments underline the positive outlook for Axon Enterprise.
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