Shares of weapons and technology provider Axon Enterprise, Inc. (AXON) have surged 55% so far this year. Axon recently delivered better-than-estimated third-quarter results on both its topline and bottom-line.
During the quarter, Axon witnessed robust demand for its TASER 7 devices, software suite, and cloud services. Additionally, bookings with the company jumped 54% in Q3. Keeping these developments in mind, let us take a look at the changes in Axon’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Axon’s top risk category is Tech & innovation, accounting for 24% of the total 34 risks identified. In its recent quarterly report, the company has changed one key risk factor under the Macro & Political risk category.
Axon highlighted the potential risk to its business from catastrophic events. These include earthquakes, adverse weather, fire, explosion, failure to contain hazardous materials, industrial accident, cyber-attack, terrorist attack, a public health crisis, or other catastrophic events, which could lead to delays in completion of sales, providing services, or performing other mission-critical functions.
Additionally, in the present COVID-19 pandemic, Axon is continuously monitoring its operations, and intends to take appropriate actions to mitigate potential risks. But there can be no guarantee that the company will be successful on this front. (See Insiders’ Hot Stocks on TipRanks)
Compared to a sector average of 17%, Axon’s Tech & Innovation risk factor is at 24%.
Wall Street’s Take
On November 19, J.P Morgan analyst Paul J. Chung reiterated a Buy rating on the stock with a price target of $222, which implies upside potential of $22.42%.
Consensus on the Street is a Strong Buy based on 5 Buys and 1 Hold. At the time of writing, the average Axon price target was $231.17, which implies upside potential of 27.7% for the stock.
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