Axon Enterprise’s (AXON) Acquisition Strategy Drives Bullish Analyst Sentiment Despite Earnings Miss

• StockStory Top Pick AXON -0.53%

Axon Enterprise, Inc. (NASDAQ:AXON) is one of the 12 oversold global stocks to invest in.

As of November 27, Axon Enterprise, Inc. (NASDAQ:AXON) stock is a consensus Buy with 90% of analysts covering it having a Buy or equivalent rating. With a consensus 1-year average price target of $822.50, the stock has a 54.27% upside potential.

On November 7, 2025, CFRA upgraded Axon Enterprise, Inc. (NASDAQ:AXON) from “Buy” to “Strong Buy.” However, the investment firm reduced its price target from $992 to $785. The price adjustment reflects a multiple of 79.0x on its 2027 EPS estimate, which is below the stock’s trailing 12-month average forward price-to-earnings ratio of 108.5x and aligned with peers.

Following the company’s Q3 earnings release, the investment firm reduced EPS estimates to $6.32 for 2025, $7.79 for 2026, and $9.94 for 2027, reflecting the company’s earnings miss in the quarter. This comes despite the company raising its full-year 2025 revenue guidance to roughly $2.74 billion, translating into 31% growth.

Meanwhile, on November 4, 2025, Axon Enterprise, Inc. (NASDAQ:AXON) announced its definitive agreement to acquire Carbyne. With this acquisition, the company will merge Carbyne’s cloud-native emergency communications platform with its own AI-driven insights. This will result in Axon 911, a next-generation system that connects callers, dispatchers, and responders. The companies are expected to close the transaction in the first quarter of 2026.

CFRA cited the company’s $5 billion expansion of its total addressable market from its Carbyne and Prepared acquisitions and expressed optimism about its strengthened international momentum, driven by a major European cloud deal.

Axon Enterprise, Inc. (NASDAQ:AXON), a global public safety technology company, provides connected devices, digital evidence systems, and AI-enhanced tools for emergency responses and security operations.

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.

READ NEXT: 12 Best Commodity Stocks to Buy Right Now and 10 Best Crypto-Related Stocks to Invest In.

Disclosure: None.