Axon Enterprise's (AXON) Q1 performance, specifically in bookings, strengthens its case for durable growth of over 30%, Morgan Stanley said in a Thursday note.

The company once again posted a strong quarter, with revenue growth of 34% marking the ninth straight quarter of 30%-plus growth, Morgan Stanley analysts said. They noted that bookings greatly surpassed expectations with an increase of 44%, benefiting from developments in artificial intelligence.

Axon's growth expanded across several segments, as Dedrone bookings surged 500% year over year, international sales doubled, and enterprise rose 50%, the analysts noted.

The recent results support Morgan Stanley's view that Axon can keep delivering elevated growth as its platform diversifies beyond core US state and local law enforcement into new areas such as global markets, federal agencies, enterprises, drone technology, and 911 systems, according to the note.

Morgan Stanley maintained the company's stock rating at overweight and lowered the price target to $600 from $675.

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