RBC Capital reiterates Axon stock rating on growth outlook

Investing.com - RBC Capital reiterated an Outperform rating on Axon Enterprise (NASDAQ:AXON) with a price target of $735.00.

Analyst David Paige said Axon is positioned to reach approximately $6 billion in revenues and 28% EBITDA margins by FY28, driven by deeper US public safety market penetration, expansion in Enterprise and International segments, and increased drone adoption.

The Axon 911 platform unlocks incremental AI attachment opportunities, the analyst said.

RBC Capital said it would remain buyers on weakness, viewing the recent stock decline as reflective of the broader software selloff rather than fundamental deterioration. The stock currently trades at $372.87, down nearly 49% over the past six months and near its 52-week low of $362.73. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts maintaining a consensus "Buy" rating. For investors seeking deeper insights, InvestingPro offers a comprehensive Pro Research Report on Axon, one of 1,400+ US equities covered with expert analysis and actionable intelligence.

The firm said Axon’s sensor-driven data creates a durable competitive moat with reinforcing network effects across its integrated platform, serving law enforcement, prosecutors, and command centers. This competitive advantage is reflected in the company’s impressive gross profit margin of nearly 60% and robust revenue growth of 33% over the last twelve months.

In other recent news, Axon Enterprise has been the focus of several analyst assessments following its financial and strategic updates. TD Cowen raised its price target for Axon Enterprise to $950, citing impressive fourth-quarter bookings growth of 53% and fiscal 2026 revenue guidance that exceeded expectations. Craig-Hallum also acknowledged Axon’s strong fourth-quarter results, though it lowered its price target to $820 due to valuation concerns. Similarly, RBC Capital reduced its price target to $735, emphasizing Axon’s ability to expand into new product categories while maintaining its position in U.S. public safety. Meanwhile, BofA Securities lowered its price target to $700, attributing the reduction to a broader software sector selloff and investor concerns about artificial intelligence’s impact on software-as-a-service companies. In a related development, Oppenheimer reiterated an Outperform rating for AppLovin Corp, highlighting a lack of brand awareness outside mobile-native buyers. These recent developments provide investors with updated insights into both Axon Enterprise and AppLovin Corp.

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