Peet Serfontein & Khumbulani Kunene
We enter a long position with a target price of $729.00 and a stop-loss of $566.00.
Axon Enterprise is a public safety technology company that offers law enforcement, military, and self-defence solutions, serving customers worldwide. The company is best known for developing and selling conducted energy weapons under the TASER brand as well as an integrated suite of hardware and cloud-based software solutions.
Headquartered in Scottsdale, Arizona, the company also offers AXON wearable video cameras for law enforcement officers and a hosted product called Evidence.com that allows digital evidence to be viewed, shared, and managed from a web browser. Products are sold worldwide through a direct sales force, distribution partners, and online store and third-party resellers.
Technically, the recent clustering of bullish weekly price swings signals a potential investment opportunity for the stock (see the insert on the main chart). This pattern highlights a developing bullish support dynamic where successive bullish weekly swings indicate that buying pressure is re-emerging on pullbacks and demand is starting to absorb supply more consistently. The recent green bars suggest that positive price changes are being confirmed by rising volume, implying institutional participation rather than short-term speculative activity, further reinforcing the bullish stance.
The price in the Accumulation phase out of the Wyckoff Price Cycle Theory also supports a bullish case for the stock. This pattern provides a strong foundation for upside potential, as this phase typically represents the transition from declining or range-bound conditions into a new bullish advance.
Upside price momentum according to the Moving Average Convergence Divergence (MACD) indicator, and the recent upward trajectory of the on-balance volume (OBV) indicator also supports our bullish view.
| Share Information | |
|---|---|
| Share Code | AXON |
| Industry | Capital Goods |
| Market Capital (USD) | 48.97 billion |
| One Year Total Return | 2.47% |
| Return Year-to-date | 9.26% |
| Current Price (USD) | 620.52 |
| 52 Week High (USD) | 885.92 |
| 52 Week Low (USD) | 469.24 |
| Financial Year End | December |
| The price is below its 200-day simple moving average (SMA) but is above its 200-week SMA, which also supports a bull case for the stock, highlighted by long-term structural demand. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 5.94 | 6.30 | 7.62 | 9.66 |
| Growth (%) | 6.11 | 20.91 | 26.81 | |
| Dividend Per Share (USD) | 0.00 | 0.00 | 0.00 | 0.00 |
| Growth (%) | - | - | - | |
| Forward PE (times) | 98.45 | 81.42 | 64.21 | |
| Forward Dividend Yield (%) | - | - | - | |
| The company is set to deliver solid double-digit earnings growth over the medium-term. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view:
| Share Name and Position | ARKK - Buy (Continue to hold) |
KO - Buy (Continue to hold) |
BKNG - Buy (Continue to hold) |
|
|---|---|---|---|---|
| Entry | 78.22 | 71.24 | 5 195.76 | |
| Current Price | 79.23 | 71.75 | 5 027.00 | |
| Movement | +1.3% | +0.7% | -3.2% | |
| Comment | A developing broadening-bottom pattern in the price remains of interest. The share remains above its 200-day simple moving average, although the start of downside price momentum is a concern. Our profit target is $98.00 with a trailing stop-loss at $74.60. | An upward-sloping expected price path across select forecast horizons remains of interest. The price is testing its 200-day simple moving average, while improving upside momentum is supportive. Our profit target is $80.00, with a trailing stop at $67.50. | A developing inclining channel pattern remains of interest. The price has dipped below its 200-day simple moving average, while downside price momentum is a concern. Our profit target is $6 200.00 with a trailing stop-loss at $4 800.00. | |
| Time to exit | 8 July 2026 | 21 April 2026 | 13 February 2026 |
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