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Investing.com - Needham raised its price target on Axon Enterprise (NASDAQ:AXON) to $820.00 from $750.00 on Thursday, while maintaining a Buy rating on the law enforcement technology company. The stock, which has delivered an impressive 125% return over the past year, currently trades near $705, with analyst targets ranging from $579 to $895. According to InvestingPro analysis, the company maintains a "GOOD" financial health rating.
The price target increase comes after Needham analyst Joshua Reilly spoke with a Deputy Chief from a top 5 city in Illinois to better understand how law enforcement agencies are implementing technology and their views on the competitive landscape.
Needham believes Axon’s projected revenue growth of over 25% appears sustainable due to the wide range of new products and solutions being adopted by law enforcement agencies, which supports a premium multiple for the stock.
Key findings from Needham’s research indicate that Real Time Command Center (RTCC) adoption is a priority for managing various endpoints, while both Axon and Flock remain well-positioned to consolidate more market share.
The research also highlighted that Drone as First Responder (DFR) programs are reaching an inflection point in terms of interest and adoption among law enforcement agencies.
In other recent news, Axon Enterprise has been the focus of several analyst updates and earnings reports. BofA Securities increased its price target for Axon to $895, maintaining a Buy rating, following the company’s 13th consecutive quarter of over 25% growth. TD Cowen also raised its price target to $800, citing discussions with Axon’s President about the company’s growth prospects and maintaining a Buy rating. UBS initiated coverage with a Neutral rating and a price target of $820, noting a balanced risk/reward profile.
Raymond (NSE:RYMD) James maintained an Outperform rating and a $645 price target after Axon’s first-quarter results met expectations, highlighting a 10% increase in Annual Recurring Revenue. Axon’s revenue from subscription plans now accounts for 96% of the total revenue mix, with a raised guidance anticipating a 27% year-over-year growth. TD Cowen previously raised Axon’s price target to $750, noting a 31% revenue growth that exceeded forecasts by $17 million. The firm also adjusted its fiscal year 2025 revenue growth expectations upward, with strong adoption of new products like Draft One and the T10. These developments suggest a positive outlook for Axon Enterprise, supported by strong growth and strategic product launches.
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