Markets

Why Axon Enterprise Stock Popped 5% Thursday

What happened

Shares of stunguns-'n'-body cameras-maker Axon Enterprise (NASDAQ: AAXN) rose as much as 5% in Thursday trading and looks likely to hang on to the bulk of those gains by closing bell. As the final 15 minutes of the trading begin, Axon is still up 4.5%.

So what

Why is it up? In a note earlier today, analysts at Northcoast raised their price target on Axon stock to $112. That's only about 6% above where the stock trades right now, but it seems to have been good enough to get investors excited.

Green arrow trending up over the numerals 2021.

Image source: Getty Images.

Now what

As Northcoast noted, Axon had an "impressive" fiscal third quarter that just ended in September, racking up perhaps $101 million in new contract wins, reports TheFly.com. This bodes well for the Q3 earnings report which is due out Nov. 5, or nearly four times as much new business as was gained in Q2.

Building on this momentum, Northcoast believes 2021 will be strong for Axon as well, and the analyst is predicting 3% greater revenues than most other analysts expect -- perhaps as much as $733 million, according to an estimate prepared by S&P Global Market Intelligence.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Axon Enterprise. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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