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On Thursday, TD Cowen reaffirmed its positive stance on Axon Enterprise (NASDAQ:AXON), increasing the price target to $800 from the previous $750 while maintaining a Buy rating on the stock. Currently trading at $743.85, Axon demonstrates strong financial health according to InvestingPro analysis, with a robust balance sheet showing more cash than debt. The adjustment follows a recent conference where Axon’s President, Josh Isner, discussed various topics that are central to the company’s business and growth prospects.
The conference, hosted by TD Cowen, featured a fireside chat with Isner, where he covered a wide range of subjects, including Axon’s Enterprise and International segments, Draft One & AI technology, state and local government budgets, TASER products, drones, and the company’s annual Axon Week. These discussions provided insights into the company’s current operations and future plans.
TD Cowen’s analyst highlighted Axon’s impressive year-to-date performance, noting a 26.36% increase in share value and trading near its 52-week high of $755.05. The stock is currently trading at approximately 19 times its expected 2026 enterprise value to sales ratio. This valuation marks an increase from the mid-teens levels seen earlier in the year, reflecting the company’s strong revenue growth of 32.71% and impressive gross profit margins of 60.6%.
The analyst’s commentary emphasized Axon’s strong first-quarter results and the presence of multiple drivers for growth. With the company targeting over 30% growth at an approximate $2.5 billion run-rate scale, the analyst believes that Axon’s attractive end markets and significant competitive advantages justify a premium valuation. The new price target of $800 reflects a 20 times multiple on the projected 2026 sales.
Axon Enterprise’s stock performance and the raised price target reflect the company’s robust financial health and the optimistic outlook provided by TD Cowen. The firm’s analysis suggests continued confidence in Axon’s ability to maintain its growth trajectory and expand its market presence. Based on current metrics from InvestingPro, which offers comprehensive analysis of 1,400+ stocks through detailed Pro Research Reports, Axon appears to be trading above its Fair Value, with 20 additional exclusive ProTips available for subscribers.
In other recent news, Axon Enterprise has reported strong financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.41, beating the forecast of $1.30, and reported revenue of $604 million, exceeding the anticipated $585.67 million. This marks a 31% year-over-year revenue increase, sustaining its trend of double-digit growth for the 13th consecutive quarter. Analysts at TD Cowen have raised Axon’s stock price target to $750, citing impressive revenue growth and the company’s strategic initiatives, while maintaining a Buy rating. Raymond (NSE:RYMD) James also reaffirmed its positive outlook on Axon, maintaining an Outperform rating and a price target of $645, highlighting the company’s strong annual recurring revenue and subscription plan customer growth. JMP analysts kept their Market Outperform rating with a $725 target, acknowledging Axon’s earnings beat and robust financial health. Axon’s advancements, including new product launches and international market expansion, continue to drive its growth trajectory. These developments reflect a strong start to the fiscal year and signal confidence in Axon’s strategic direction and performance.
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