Axon (AXON): Reassessing Valuation After AI Expansion, New Contracts and Analyst Price Target Cuts

Simply Wall St.12-19

Axon Enterprise (AXON) is back in focus after shares climbed about 3% as investors reacted to fresh law enforcement contracts, an expanded AI footprint through the Prepared acquisition, and ongoing ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2592531361?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/3021000-choice1-main-header/1585186644732","is_english":true,"pubTime":"2025-12-19 13:17","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2592531361","market":"us","top_or_hot":-1,"title":"Axon (AXON): Reassessing Valuation After AI Expansion, New Contracts and Analyst Price Target Cuts","media":"Simply Wall St.","content":"<div>\n<p>Axon Enterprise (AXON) is back in focus after shares climbed about 3% as investors reacted to fresh law enforcement contracts, an expanded AI footprint through the Prepared acquisition, and ongoing ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nasdaq-axon/axon-enterprise/news/axon-axon-reassessing-valuation-after-ai-expansion-new-contr\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Axon (AXON): Reassessing Valuation After AI Expansion, New Contracts and Analyst Price Target Cuts</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAxon (AXON): Reassessing Valuation After AI Expansion, New Contracts and Analyst Price Target Cuts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-19 13:17 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/capital-goods/nasdaq-axon/axon-enterprise/news/axon-axon-reassessing-valuation-after-ai-expansion-new-contr><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Axon Enterprise (AXON) is back in focus after shares climbed about 3% as investors reacted to fresh law enforcement contracts, an expanded AI footprint through the Prepared acquisition, and ongoing ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nasdaq-axon/axon-enterprise/news/axon-axon-reassessing-valuation-after-ai-expansion-new-contr\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AXON","symbol_name":"Axon Enterprise, Inc.","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nasdaq-axon/axon-enterprise/news/axon-axon-reassessing-valuation-after-ai-expansion-new-contr","article_id":"2592531361","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3021000-choice1-main-header/1585186644732"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nasdaq-axon/axon-enterprise/news/axon-axon-reassessing-valuation-after-ai-expansion-new-contr","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2592531361","pubTimestamp":1766121444,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Axon Enterprise (AXON) is back in focus after shares climbed about 3% as investors reacted to fresh law enforcement contracts, an expanded AI footprint through the Prepared acquisition, and ongoing strength in its Software and Services business.\nSee our latest analysis for Axon Enterprise.\nZooming out, Axon’s latest contracts and AI push arrive after a choppy stretch, with a roughly flat year to date share price return but a powerful three year total shareholder return above 200 percent. This...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"AXON":"Axon Enterprise, Inc."},"translate_title":"Axon(AXON)：在人工智能扩张、新合同和分析师目标价下调后重新评估估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AXON":1.5},"content_text":"Axon Enterprise (AXON) is back in focus after shares climbed about 3% as investors reacted to fresh law enforcement contracts, an expanded AI footprint through the Prepared acquisition, and ongoing strength in its Software and Services business. See our latest analysis for Axon Enterprise. Zooming out, Axon’s latest contracts and AI push arrive after a choppy stretch, with a roughly flat year to date share price return but a powerful three year total shareholder return above 200 percent. This suggests long term momentum is intact even as short term volatility reflects shifting risk appetite. If Axon’s move into AI enhanced public safety has your attention, this could be the moment to explore other high growth tech names via high growth tech and AI stocks. So with Axon delivering rapid revenue growth, trading well below consensus targets, yet already rewarded with a premium long term rerating, is this latest pullback a fresh entry point, or is the market already pricing in years of expansion? Most Popular Narrative: 31.5% Undervalued With Axon Enterprise’s fair value pegged well above the last close at $563.28, the dominant narrative leans toward sizable upside from here.  Analysts are assuming Axon Enterprise's revenue will grow by 24.3% annually over the next 3 years. Analysts assume that profit margins will shrink from 13.6% today to 10.4% in 3 years time.  Read the complete narrative. Want to see why rich growth expectations can still coexist with thinner margins and a towering future earnings multiple? The narrative’s valuation hinges on that tension. Curious how those moving parts combine to justify a premium price tag far above today’s level? Dive in to unpack the full set of assumptions driving this fair value. Result: Fair Value of $822.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Axon’s reliance on government budgets, along with growing regulatory scrutiny of AI driven surveillance, could quickly challenge today’s bullish growth and valuation assumptions. Find out about the key risks to this Axon Enterprise narrative. Another Angle on Valuation While the narrative points to Axon as materially undervalued, our SWS DCF model paints a cooler picture. On that view, Axon looks expensive, with shares trading above an intrinsic value closer to $400, raising the question of whether optimism around AI and drones has run too far ahead. Look into how the SWS DCF model arrives at its fair value. AXON Discounted Cash Flow as at Dec 2025 Build Your Own Axon Enterprise Narrative If you see the story differently, or want to stress test the numbers yourself, you can build a personalized Axon view in just a few minutes, starting with Do it your way. A great starting point for your Axon Enterprise research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Ready for your next investing edge? Do not stop at one opportunity when the market is full of potential. Use the Simply Wall Street Screener to uncover tomorrow’s winners before everyone else notices.  Explore early-stage opportunities by scanning these 3628 penny stocks with strong financials that pair small share prices with surprisingly solid fundamentals. Gain exposure to the AI trend by targeting these 24 AI penny stocks that are using scalable, data-driven business models. Seek income-focused ideas through these 13 dividend stocks with yields > 3% that combine dividend yields with businesses that aim to keep paying through market cycles.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTechNew: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2592531361","isCrawlerRequest":true}