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Investing.com - Citizens reiterated a Market Outperform rating and $825.00 price target on Axon Enterprise (NASDAQ:AXON).
The firm said the stock appears to be weighed down by broader concerns around AI disruption despite clear customer validation of AI use cases and willingness to pay. The stock has declined 51% over the past six months and currently trades at $345.94, near its 52-week low of $339.01. Citizens views shares as attractive at current levels and considers Axon a strong opportunity for long-term capital appreciation.
The firm cited a compelling financial profile, with management expecting a revenue CAGR of 29% through FY28, combined with an approximately 28% adjusted EBITDA margin by FY28. The company delivered impressive gross profit margins of nearly 60% in the last twelve months. The company operates in a $159 billion TAM that spans both hardware and software product form factors, leading to an attractive recurring revenue business. InvestingPro subscribers can access 20 additional ProTips and the comprehensive Pro Research Report for deeper analysis of Axon’s growth trajectory.
Citizens highlighted an expanding product portfolio that should drive an already well-established land-and-expand go-to-market motion, with net revenue retention improving to 125% in F4Q25. The firm noted superior brand recognition and market leadership that should drive further penetration of core U.S. state and local markets, as well as international opportunities expanded by Dedrone.
The firm pointed to the leadership of Founder and CEO Rick Smith, driving toward a goal of reducing gun-related deaths between police and the public by 50% before 2033.
In other recent news, Axon Enterprise has been the subject of several analyst reports highlighting its growth prospects and product developments. RBC Capital’s David Paige maintained an Outperform rating, projecting that Axon could reach approximately $6 billion in revenues by fiscal year 2028, driven by deeper market penetration and new product offerings like the Axon 911 platform. TD Cowen, while lowering its price target from $950 to $825, maintained a Buy rating, noting the introduction of new AI products at Axon’s customer conference in Nashville.
Morgan Stanley reiterated an Overweight rating with a $675 price target, suggesting investors consider buying on weakness due to recent stock movements. Needham also reiterated a Buy rating with a $600 price target, citing positive demand trends and the company’s competitive edge with its new ecosystem products. Additionally, Axon announced that director Matthew McBrady will not seek re-election at the 2026 Annual Meeting of Shareholders, although his decision was not due to any disagreements with the company.
These developments reflect a period of strategic growth and product innovation for Axon, capturing the attention of multiple analyst firms.
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