RBC Capital Initiates Coverage of Axon Enterprise (AXON) with 'Outperform', $860 PT

Axon Enterprise Inc. (NASDAQ:AXON)  is one of the best QQQ stocks to buy according to Wall Street analysts. On November 17, RBC Capital initiated coverage of Axon with an Outperform rating and $860 price target. This sentiment came out as RBC Capital believes that Axon is expected to sustain its 25% revenue growth due to a strong position in a large and growing addressable market.

Earlier the same month, the company released its Q3 2025 earnings report, where Axon Enterprise disclosed that it generated a total revenue of $711 million, which was a 31% increase year-over-year. This performance was led by the SaaS segment, which grew 41% year-over-year to $305 million. Connected Devices revenue also saw an increase of 24% year-over-year to $405 million.

Key product growth drivers included TASER 10, which led to a 17% TASER Revenue Growth, and Axon Body 4, driving a 20% Personal Sensors Revenue Growth. The Platform Solutions Revenue saw the most rapid expansion, surging 71%, driven by counter-drone technology, virtual reality, and fleet products. Additionally, the company’s ARR grew 41% to $1.3 billion, with net revenue retention remaining strong at 124%. For Q4, Axon provided revenue guidance of $750 to $755 million with a full-year revenue guidance of ~$2.74 billion (representing 31% growth at the midpoint).

Axon Enterprise Inc. (NASDAQ:AXON) develops, manufactures, and sells conducted energy devices/CEDs under the TASER brand in the US and internationally. It operates through two segments: Software & Sensors and TASER.

While we acknowledge the potential of AXON as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.