Investing.com - TD Cowen has reiterated a Buy rating on Axon Enterprise (NASDAQ:AXON) with a price target of $925.00, following the company's third-quarter results. This target sits below the analyst high target of $1000 but well above InvestingPro's Fair Value estimate, suggesting the stock may be overvalued despite its strong performance.
The company reported revenue growth of 31% in the third quarter, exceeding analyst expectations of 29.5%, though TD Cowen noted this represented a smaller beat compared to previous trends due to timing issues and analyst mismodeling. This performance aligns with Axon's impressive 32.41% revenue growth over the last twelve months and its 5-year revenue CAGR of 31%.
Axon Enterprise raised its full-year guidance by $50 million at the midpoint, compared to a $40 million increase in the previous quarter, while its fourth-quarter guidance of 31% growth surpassed Street expectations of 30%.
Management continues to expect full-year bookings growth in the high-30% range, with the company's AI Era plan remaining strong and expected to represent more than 10% of full-year Software and Light (S&L) bookings.
TD Cowen also expressed approval of Axon's acquisition and creation of Axon 911, recommending investors add to their positions in the stock. With a current ratio of 2.95, Axon holds more cash than debt on its balance sheet, providing financial flexibility for such strategic acquisitions. InvestingPro identifies 14 additional investment tips for AXON, available in the comprehensive Pro Research Report covering what really matters for smarter investing decisions.
In other recent news, Axon Enterprise reported its third-quarter 2025 earnings, showing a mixed financial performance. The company announced earnings per share (EPS) of $1.17, which was below the analysts' forecast of $1.52, resulting in a 23.03% negative surprise. However, Axon surpassed revenue expectations, reporting $711 million compared to the anticipated $704.84 million, a positive surprise of 0.87%. In response to these results, Piper Sandler lowered its price target for Axon to $753, while maintaining an Overweight rating, following a 20% drop in after-hours trading. Meanwhile, Needham reiterated its Buy rating and maintained a price target of $870, noting that Axon exceeded its revenue estimates by 240 basis points. These recent developments highlight the mixed reactions from analysts regarding Axon's financial performance.
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