Axon Enterprise, Inc. (AAXN) PT Raised to $80 at Needham & Company; 'FTC Announcement Creates Buying Opportunity'

Needham & Company analyst Scott Berg raised the price target on Axon Enterprise, Inc. (NASDAQ: AAXN) to $80.00 (from $70.00) while maintaining a Buy rating, saying the FTC announcement creates a buying opportunity.

Berg commented, "Axon announced Friday it is suing the FTC in U.S. District Court over its structure and administrative processes related to the commission's review of Axon's 2018 VIEVU acquisition. Axon stated that the FTC is forcing it to surrender independently created IP as part of a potential settlement to spin off the assets. Although we do not understand the FTC's view on this deal because of its size ($13mm) in a small TAM (<$1B) experiencing consolidation with a vendor in financial distress, we believe Friday's 3.4% sell-off more than accounts for any potential financial impact caused by a divestiture. While the long-term impact of the proposed settlement is unknown, we would take advantage of the share weakness as we believe body camera sales are ramping fast and that the acceleration could drive upside to FY20 estimates."

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