Morgan Stanley analyst Meta Marshall maintained a Buy rating on Axon Enterprise (AXON – Research Report) today and set a price target of $695.00.
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Meta Marshall’s rating is based on Axon Enterprise’s impressive growth trajectory and strategic positioning. The company has consistently achieved a 25-30% growth rate, which is now seen as more sustainable due to the increasing role of software, particularly with the adoption and advancement of AI offerings. This growth was further demonstrated in the recent quarter, where Axon posted over 30% growth for the fifth consecutive quarter, along with record international bookings and strong adoption of premium plans and AI products.
Additionally, Axon is well-positioned to mitigate risks from tariffs, as their TASER products are manufactured in the U.S., and they have diversified their supply chain. The company has not experienced significant pressure on customer budgets despite macroeconomic uncertainties. The robust performance in software and platform solutions, along with strong AI momentum and a substantial user base, supports the valuation premium and competitive positioning, justifying the Buy rating.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $750.00 price target.