In a report released on May 7, Mike Ng from Goldman Sachs maintained a Buy rating on Axon Enterprise (AXON – Research Report), with a price target of $366.00.
Mike Ng has given his Buy rating due to a combination of factors that indicate Axon Enterprise’s solid performance and growth potential. The first-quarter earnings of Axon surpassed the consensus estimates, with both revenues and EBITDA exceeding expectations. This outperformance was driven by strong momentum in Evidence & Cloud Services and robust demand for TASER products, particularly the T10. Additionally, the company’s increased revenue and EBITDA outlook for 2024, despite higher stock-based compensation and capital expenditures, signal confidence in its future financial health. Innovations in software and sensors, including advancements in AI and drone technology, are also noteworthy contributors to Axon’s promising outlook.
Moreover, Axon’s strategic acquisition of Dedrone is set to significantly expand its total addressable market (TAM), adding command and control solutions against drone threats to its portfolio. This move complements Axon’s already diverse TAM, which spans several high-growth segments like Digital Evidence Management and Real-time Operations. The company’s annual recurring revenue shows a remarkable year-over-year increase, underscoring its scalability and the recurring nature of its revenue streams. Despite a slight quarter-over-quarter dip in future contracted revenue, Axon boasts a strong pipeline with expectations of vigorous bookings throughout the year, reinforcing the positive sentiment behind the Buy rating.
According to TipRanks, Ng is a 3-star analyst with an average return of 3.1% and a 46.34% success rate. Ng covers the Technology sector, focusing on stocks such as Apple, Arista Networks, and Cisco Systems.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $381.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Axon Enterprise (AXON) Company Description:
Axon Enterprise, Inc. engages in the development, manufacture, and sale of conducted electrical weapons for personal defense. It operates through the TASER Weapons and Software and Sensors segments. The TASER Weapons segment sells conducted electrical weapons, accessories, and other related products and services. The Software and Sensors segment includes devices, wearables, applications, cloud and mobile products. The company was founded by Patrick W. Smith and Thomas P. Smith on September 7, 1993 and is headquartered in Scottsdale, AZ.
Read More on AXON:
- Legal Battles and IP Risks: Navigating Axon Enterprise’s Financial Uncertainties
- Axon price target raised to $370 from $325 at Craig-Hallum
- Axon raises FY24 revenue view to $1.94B-$1.99B from $1.88B-$1.94B
- Axon reports Q1 2024 revenue of $461 million, up 34% year over year, raises outlook
- Axon to acquire Dedrone, accelerating the next generation of drone solutions to protect more lives in more places
