Axon Shares Recover From Selloff as Raymond James Keeps Outperform Rating
Axon shares closed at $420.37 on October 23, up nearly 10% from October 19 but still about 45% below their 52-week high. Raymond James maintained its Outperform rating while lowering its price target to $675 from $800, implying about 61% upside. Second-quarter revenue grew 35%, though margin pressure and valuation concerns remain ahead of the November 5 earnings report.
Axon closed at $420.37 on October 23, almost 10% above its October 19 close of $383.09, yet still roughly 45% under its 52-week peak. Raymond James cut its target to $675 from $800 while retaining Outperform, suggesting about 61% upside.
The September 15 announcement of $1 billion in 0% convertible notes due 2031 preceded a roughly 10% drop. UBS later trimmed its target to $470 and kept Hold. Axon’s second-quarter revenue reached $904 million, up 35%, while adjusted gross margin slipped 40 basis points.
Axon’s rebound and analyst target cut may matter most to shareholders, including funds and individual investors exposed to high-valuation growth stocks. If margin pressure persists, the company could face tougher choices about pricing, hiring, or product investment. Public-safety agencies and communities that use its cameras, software, and counter-drone tools may also feel indirect effects if procurement costs or service priorities shift. The November 5 report could shape near-term confidence without settling longer-term questions about growth and profitability.