MS raises Axon Enterprise to 'overweight', shares up premarket

Axon Enterprise

03/12/2024 12:11

** Shares of Taser maker Axon Enterprise  AXON.O  rise 2.1%
premarket after Morgan Stanley raises to "overweight" from
"equalweight", ups TP to $700 from $500
    ** Brokerage says it is increasingly confident of Axon's
durable growth profile, despite seeing company as expensive
    ** MS says co's 25-30% growth rate that the company is
seeing is becoming more durable with software becoming a growing
part of the model
    ** The broker identified some underappreciated strengths in
the company, namely: high police budgets for technology; few
software competitors and a quicker adoption of AI solution sets
which should provide additional revenue
    ** "Other than valuation, a very big hurdle, we are running
out of clear reasons to be "equalweight," says MS
    ** Up to the previous session's close, shares were up
146.3%​ YTD
    ** Of 16 analysts that cover Axon Enterprise, 15 rate the
stock "strong buy" or "buy"​ and one analyst rates "hold" 
    
    

 (Reporting by Joao Manuel Mauricio)
 ((JoaoManuel.VicenteMauricio@thomsnreuters.com))