As Police Oversight Increases, Goldman Sachs Says It Will Buy Taser Maker Axon Enterprise

Axon Enterprise should be purchased, according to Goldman Sachs.

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Axon's long-standing connections to state and local police will increase demand for the company's stun gun and other less-lethal goods, according to analyst Michael Ng, who started coverage of the shares with a buy rating. This, according to the analyst, is in response to increased requests for public safety accountability.

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Ng wrote to customers on Tuesday, "AXON's marketing strategy with TASER has led in deep customer relationships with local and state authorities (e.g., 17k of 18k US law enforcement agencies) and a highly valued installed base of law enforcement professionals.

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He continued, "AXON is particularly well placed to cross-sell sensor, such as body cameras and fleet cameras, as well as related software, cloud storage, and analytics services. In addition to prospects for TASER upgrades and installed base expansion.

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Shares of Axon Enterprise have increased by more than 33% this year and will continue to outperform with a gain of more than 5% in 2022. With a $263 price target, the analyst projects an 18% increase from Tuesday's finish. In Wednesday's premarket trade, the stock of the taser manufacturer increased somewhat.

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The analyst pointed out that given Axon's relationship with around 17,000 out of 18,000 U.S. law enforcement agencies, it should be simple for it to fill rising demand for sensors like body cameras. According to the notice, the company has devoted sales representatives for 1,200 of the top agencies, which account for 70% of law enforcement patrol officers.

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According to the analyst, all of this should enhance revenue growth.

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"Growing demand for bodycams, fleet cameras, and less-lethal weaponry against the backdrop of attempts to increase public safety accountability and efficacy, together with AXON's 10+ year future committed revenue, gives insight into revenue growth," Ng wrote.

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AXON should gain from the expansion into new customer segments (such as federal and consumer) and complementary products and services, he continued.

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