Axon Enterprise Drives 911 Tech Innovation Through Recent Acquisitions

Written by Emily J. Thompson, Senior Investment Analyst

AXON-1.24%

Source: Fool

Updated: 2h ago

0mins

Source: Fool

911 Tech Innovation: Axon's acquisitions of Prepared and Carbyne aim to revolutionize the 911 space, potentially reducing response times from over two minutes to mere seconds, significantly enhancing public safety efficiency.
AI Product Growth: The AI EAPlan is recognized as the fastest booked software product, expected to contribute over 10% of U.S. state and local bookings, reflecting strong customer demand and trust in AI solutions.
Enterprise Market Expansion: Axon sees significant opportunities in the enterprise market, with new products like the ABW mini body camera projected to help reduce theft rates by 2%-3% in retail, translating to billions in potential savings.
Long-term Growth Strategy: Axon aims to maintain over 25% annual growth by simultaneously selling existing products to new customers and new products to existing customers, showcasing its dual development potential in public safety and enterprise markets.

AXON

$583.84+Infinity%1D

Analyst Views on AXON

Wall Street analysts forecast AXON stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AXON is 814.58 USD with a low forecast of 610.00 USD and a high forecast of 925.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

14 Analyst Rating

13 Buy

1 Hold

0 Sell

Strong Buy

Current: 591.150

Low

610.00

Averages

814.58

High

925.00

Current: 591.150

Low

610.00

Averages

814.58

High

925.00

Morgan Stanley

Meta Marshall

Overweight

downgrade

$760 -> $713

2025-12-17

Reason

Morgan Stanley

Meta Marshall

Price Target

$760 -> $713

2025-12-17

downgrade

Overweight

Reason

Morgan Stanley analyst Meta Marshall lowered the firm's price target on Axon to $713 from $760 and keeps an Overweight rating on the shares. The AI trade broadened out from semi names in 2025, helping infrastructure names, particularly within optical, notes the analyst, who believes that trade can continue, particularly in optical, through the first half of 2026. However, investors will "need to get more selective for full year returns given multiples," the analyst added in a year-ahead note on the group.

RBC Capital

Outperform

initiated

$860

2025-11-17

Reason

RBC Capital

Price Target

$860

2025-11-17

initiated

Outperform

Reason

RBC Capital initiated coverage of Axon with an Outperform rating and $860 price target. The company's 25% revenue growth should sustain, driven by cross-sell/up-sell opportunities within the U.S. state and local public safety market, continued penetration into emerging customer verticals, and expansion into new product categories, the analyst tells investors in a research note. RBC believes Axon has a "strong position in a large and growing addressable market."

Goldman Sachs

Michael Ng

Buy

downgrade

$940 -> $800

2025-11-05

Reason

Goldman Sachs

Michael Ng

Price Target

$940 -> $800

2025-11-05

downgrade

Buy

Reason

Goldman Sachs analyst Michael Ng lowered the firm's price target on Axon to $800 from $940 and keeps a Buy rating on the shares. Axon missed Q3 gross profit and bookings expectations due to timing-related weakness in Software & Services, though Connected Devices performed solidly across TASER, sensors, and platforms, the analyst tells investors in a research note. Management guided to a strong Q4 rebound, reiterating high bookings growth and highlighting growing international and retail demand, including major overseas deals. Ongoing adoption of the AI Era Plan and acquisitions of Carbyne and Prepared position AXON to modernize 911 operations, though near-term financial impact remains minimal, Goldman says.

Piper Sandler

Overweight

NULL

downgrade

$893 -> $753

2025-11-05

Reason

Piper Sandler

Price Target

$893 -> $753

2025-11-05

downgrade

Overweight

NULL

Reason

Piper Sandler lowered the firm's price target on Axon to $753 from $893 and keeps an Overweight rating on the shares. The firm notes shares were down about 20% after hours given the roughly in line print most aren't used to seeing from this management team, slowdown in some of the lead metrics, and high-multiple to begin with. While the quarter itself wasn't inspiring, Piper actually thinks there's a lot to like underneath.

About AXON

Axon Enterprise, Inc. is a technology company in global public safety. It is building the public safety operating system by integrating a suite of hardware devices and cloud software solutions that lead modern policing. Its segments include Connected Devices and Software & Services. Connected Devices segment includes the development, manufacture and sale of fully integrated hardware solutions such as conducted energy devices (CEDs), body cameras, drones, accessories, extended warranties and other hardware products. Software & Services segment includes the development and sale of fully integrated cloud-based software solutions such as Axon Evidence, Records Management System, Draft One and other software and services that enable law enforcement to securely store, manage, share and analyze video and manage operations. Its global customer base includes first responders across international, federal, state and local law enforcement, fire, corrections and emergency medical services.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.