Axon Breaks Out of a Tight Trading Range
Here's why the stock is outperforming.
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* Axon stock is outperforming following two price target increases.
* We will review our price target as the ISC West conference concludes.
Shares of portfolio holding Axon Enterprise AXON are outpacing the market Thursday as they have one of their strongest days in several weeks after trading in a tight range between $310-$320. They are breaking out of that range Thursday, hitting a fresh record high following Needham hiking its price target to a Wall Street high of $400 from $315, and JPMorgan lifting its target to $365 with a new "Overweight" rating.
The rationale behind Needham’s significant boost to its price target is the firm has updated its total addressable market model for the company. While we agree Axon has a strong and growing position in the public safety market, and we remain bullish on the positive mix shift toward cloud, we would rather see Axon court some wins with its recently acquired real-time crime center Fusus business than simply assume they will be had. It’s not that we doubt Axon’s potential for those wins or its ability to cross-market its offerings in the law enforcement and public safety markets, we’d just rather not have egg on our faces should those wins take time to materialize.
Over the weekend, the International Security Conference & Exposition (ISC West) will conclude and as the dust settles on that event, based on program wins and other announcements we’ll revisit our AXON price target as needed.
At the time of publication, TheStreet Pro Portfolio was long AXON.
