Axon Enterprise (NASDAQ:AXON) is still seeing strong demand for its conducted electrical weapons (CEWs). The manufacturer of law enforcement protective equipment recorded a $20 million order in the fourth quarter by an international customer for its newest stun gun, the cloud-connected Taser 7, the largest order in the company's history.

Coupled with Axon raising its adjusted earnings guidance for the full year, that led Baird analyst William Power to hike his price target for the stock from $135 to $200. With the shares closing on Thursday at just under $160, it suggests he sees 25% upside for the stock.

Police officer wearing a Taser 7 and Axon Body 3 camera

A police officer with Axon's Taser 7 and Axon 3 body camera. Image source: Axon Enterprise.

Tasers still account for the bulk of Axon's revenue, generating $135.7 million in sales in the fourth quarter, up almost 62% year over year, or 60% of total revenue. The CEW has become a crucial tool for law enforcement, and Axon says it's been adopted by a majority of U.S. police departments.

Body camera sales also remain robust, though they were actually down 22% from last year. It launched its Axon Body 3 body cam, which, like the Taser 7, is cloud-connected, a key selling feature of its product ecosystem. Its CEWs, body cams, and record and digital evidence management are seamlessly interconnected. That will be important since Motorola Solutions (NYSE:MSI) just launched its own competing suite of connected cameras, digital evidence management, and cloud-based support. 

Axon raised its adjusted EBITDA guidance to a range of $125 million to $140 million from its previous range of $120 million to $130 million.

The Baird analyst told investors in a research note that he believes the new guidance is conservative, but that Axon has a strong competitive position in the market grounded by a record of growth.

 
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