Industrials
AXON's impressive growth over the past several years has been a result of strong products, innovation, execution, acquisitions and partnerships. Unfortunately, it looks like one of those early partnerships has turned south and as Flock Safety emerges as a competitor to AXON in the ALPR, drone and RTCC space, it could impact the growth trajectory of AXON's recent Fusus acquisition. AXON's share price has surpassed Northcoast’s price target, and they are moving to a Neutral rating on valuation and concerns FY25 guidance will not live up to the Street’s lofty expectations.
Edition: 205
- 21 February, 2025
Industrials
The share price of AXON shot up nearly 30% following the release of Q3 results where revenue grew 32% and adjusted EBITDA margins hit recent record highs. The company has experienced sustained growth that few businesses could ever replicate and investor’s confidence is growing in AXON's ability to profitably invest in its future as well as the line of sight for sustained growth for the next three to four years with DraftOne, AI Era, Dedrone, Fusus as well as the market expansion opportunities with legacy products. While logic suggests there could be a pullback over the next few months, Northcoast maintains their Buy rating as they believe the shares will be even higher a year from now. Looking out to 2025 and 2026, consensus numbers remain too low and by a good margin.
Edition: 199
- 15 November, 2024
Technology
Poised to outperform - Northcoast's proprietary contract tracker points to a record quarter of bookings in 4Q21. They are expecting the shares' momentum will return, and return in a big way in 2022 as the company continues its streak of driving revenue and profitability growth above a combined 40%. AXON has laid the heavy groundwork building out its sales staff in new international markets, jails / correctional facilities and Federal agencies. Additional growth will come as agencies move up the value chain to add new features with its VR training modules the biggest draw for customers. TP $237 (70% upside).
Edition: 128
- 04 February, 2022