A public safety stock with 60% upside
TD Cowen’s top stock pick heading into the new year is a maker of law enforcement equipment that the bank believes could climb almost 60% from current levels. CNBC Pro obtained the lists of top stock picks that major sell-side brokerages on Wall Street, such as TD Cowen, are distributing to clients, and looked for those where analysts see the most upside. For TD Cowen, the stock with the highest potential upside is Axon Enterprise. Axon Enterprise , the $45-billion company best known for the Taser electroshock weapon, has slipped 2% this year through Thursday. Shares of Axon have plummeted more than 30% since their highs in August. The stock sank in 26% in November alone after Axon’s third-quarter earnings fell short of Wall Street’s expectations. The Scottsdale, Arizona-based company attributed the miss to the effects of higher tariffs. AXON YTD mountain Axon shares in 2025 But TD Cowen’s price target of $925 implies potential upside of nearly 60% from Thursday’s close of $581.03. Analysts led by Andrew Sherman called Axon a “high-growth powerhouse” currently selling at an attractive entry level. “We see the pullback post the 3Q print as an overreaction, and with shares at ~10x EV/CY27E Sales (down from its mid/high-teens avg most of this year), we see a very compelling entry point,” he wrote. “We think mgmt’s track record has earned it a lot of credibility, which should be proven out with a strong 4Q print.” The TD Cowen analysts also cited Axon’s AI Era plan as another underappreciated opportunity, adding that it is the company’s fastest growing product ever, with $150 million of bookings in the second quarter alone. The plan, which offers AI-enhanced public safety tools, should make up 10% of U.S. state and local bookings this year, the analysts said. Nor has Axon’s pricing power and total addressable market penetration been fully valued by investors, Sherman wrote, noting that potential sales in Europe offer an “accelerating,” $3.7 billion opportunity across 17 countries. “We see lots of durable growth drivers that should support another year of very high growth at ~$3b scale,” TD Cowen told clients. “With strong momentum in both new markets & new products, we see sustainable growth durability for years.”
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