Raymond James analysts raised the price target for Axon Enterprise (NASDAQ:AXON) to $645 from $515, maintaining an Outperform rating on the stock. The revision reflects continued confidence in the company’s strong growth trajectory, driven by its strategic shift toward software and artificial intelligence, despite a recent pullback in the stock.
Axon shares have surged over 240% in the past two years and 130% in 2024, underscoring investor enthusiasm for the company’s transformation and innovative offerings. However, the stock recently dipped approximately 20%, likely due to profit-taking, valuation concerns, and elevated expectations for its fourth-quarter 2024 results and 2025 guidance. This decline, the analysts argue, presents a compelling entry point for investors.
Axon’s increasing emphasis on software and AI positions it well for continued growth. The analysts anticipate positive estimate revisions with the company’s upcoming earnings report, highlighting Axon’s accelerating cloud revenue. Raymond James’ revised model projects cloud-related revenue reaching $1.5 billion by 2026, a $103 million increase from previous estimates and approximately $200 million above consensus. Total sales are forecast to hit $3.16 billion, exceeding the Street’s projections by $72 million.