Needham raises Axon Enterprise stock price target to $870 on strong AI bookings

Published 05/08/2025, 11:22
Needham raises Axon Enterprise stock price target to $870 on strong AI bookings

Investing.com - Needham has raised its price target on Axon Enterprise (NASDAQ:AXON) to $870.00 from $820.00 while maintaining a Buy rating, citing the company’s strong quarterly performance. The company, currently valued at $58 billion with a stock price of $744.88, has delivered an impressive 160% return over the past year.

Axon reported revenue that exceeded both Needham’s and Wall Street’s estimates by 420 basis points, showing strength across both new and existing products in its portfolio. According to InvestingPro data, the company maintains robust gross margins of 60.6% and has achieved revenue growth of 32.7% in the last twelve months.

The company’s AI Era plan demonstrated robust performance with bookings exceeding $150 million in the quarter, while new products contributed 30% of total bookings during the period.

Needham highlighted potential growth catalysts in the second half of 2025, noting increased interest in European countrywide deals for TASER, Bodycam, and software products due to localized security concerns and greater cloud product adoption.

Axon management provided additional details regarding bookings trajectory for fiscal year 2025, which is expected to be in the high 30% range, with Needham noting that "constant product innovation is supporting a higher growth rate" than even their bullish expectations.

In other recent news, Axon Enterprise reported impressive financial results for the second quarter of 2025, significantly surpassing analyst expectations. The company posted non-GAAP earnings per share of $2.12, which was well above the consensus estimate of $1.44. Revenue also exceeded forecasts, reaching $668.5 million, a 33% increase from the previous year, and surpassing the anticipated $641.0 million. Citizens JMP analyst Trevor Walsh reiterated a Market Outperform rating for Axon Enterprise, maintaining a price target of $825.00. This rating underscores confidence in the company’s performance and potential for continued growth. The robust earnings and revenue figures have strengthened investor confidence. Axon’s financial success is highlighted by a notable earnings surprise of 45.21%. These developments reflect positively on the company’s strategic direction and operational execution.

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