Nasdaq 100 Initiated Axon’s Stock Price Target Hiked Moving into 2025

Axon's stock (NASDAQ: AXON) performance through 2024 has been nothing short of impressive, with gains of 147.90% earning Axon a place in the Nasdaq 100. The stock has been a significant outperformer over the NDX in recent years (+31.58% through 2024), whilst 2025 could prove further ammunition for bulls if recent price target revisions are anything to go by.

With AXON currently changing hands at $623.80, market cap has grown to $48.14 billion, and recent PT revisions are coming to the upside. Morgan Stanley upgraded to Overweight (from Equal) with a raised $700 price target, citing the 25-30% growth sustainability as durable. Baird are another to have raised their forecast on Axon, pushing the price target up to $800, whilst retaining an Outperform rating.

Also to raise in recent months include Barclays ($585), JMP Securities ($610), and BofA ($710), further supporting the narrative on the street of more bullish action to come.

The company has grown into a leading player in law enforcement technology, with recent growth being largely attributed to the widespread adoption of its flagship product, the Taser stun gun, by agencies across the globe.

During the third quarter, Axon's Taser segment experienced a 36% year-over-year revenue growth, generating $221.7 million, which constitutes 41% of the company's total revenue. The company is also a leader in the market for law enforcement body cameras, in-car cameras, and various sensors, with this segment’s revenue increasing by 29% to $322.5 million, making up 59% of overall sales. As a result, Axon's total revenue for the third quarter was $544 million, marking a 32% year-over-year increase.

Furthermore, Axon's adjusted earnings per share in the third quarter rose by 38% to $1.45. The company's strong performance is reinforced by its annual recurring revenue, which grew by 36% to $885 million, with subscriptions accounting for 95% of total revenue. The average contract length for the company's services extends over five years, maintaining a net revenue retention rate of 123%.

Axon's management has raised the full-year revenue outlook to $2.07 billion, projecting continued growth of 32%. The company's estimated total addressable market stands at a substantial $77 billion annually.

Axon's ascension to the Nasdaq-100 not only highlights its substantial growth trajectory but also underscores the trust that analysts and investors place in its future potential. With a leadership position in law enforcement technology and an impressive market reach, Axon Enterprise is poised to continue strong performance as it moves forward.