A 50% gap or more between a growth stock’s price and the average Wall Street target is notable. It suggests analysts see significant upside that the market isn’t currently pricing in. 

Here are three growth stocks where this is currently the case. 

Overblown AI risks

First up is Axon Enterprise (NASDAQ:AXON). The current 12-month price target of $722 implies a 62% gain (although there’s no guarantee that will happen, of course). 

Axon sells Tasers, bodycams and digital evidence management software to law enforcement agencies. Look at any police officer in the Western world today and they’ll most likely be wearing one of the firm’s yellow-and-black Tasers and bodycams. 

In Q2, Axon reported its 10th consecutive quarter of revenue growth above 30%. It’s now expecting top-line growth of 32%-34% in 2026, up from 30%-32% previously. Demand’s broad-based, but its counter-drone solutions business is really taking off. 

Now, the interesting thing here is that the stock’s been hit by the AI-kills-software sell-off. This adds uncertainty moving forward because AI’s developing rapidly and could render many software/data providers obsolete. 

Personally, I doubt that will be Axon because it owns the hardware and data ecosystem. Its bodycams and other devices generate the data, while Axon Evidence stores and manages it. That gives Axon a valuable position as AI’s used to analyse more video and other evidence. 

Therefore, I see it as a huge beneficiary rather than a casualty of AI. But don’t take my word for it, just look at the evidence: recurring AI product revenue grew almost 700% in Q2! 

The shoplifting epidemic is also creating growth opportunities within the retail sector for its bodycams. I think the stock’s worth considering buying for the long term. 

Digital growth across Asia

Next is Sea Limited (NYSE:SE). It operates Shopee, the leading e-commerce platform across most of Southeast Asia, a digital entertainment business called Garena (best known for mobile game Free Fire), and a fast-growing fintech platform.

Right now, the stock trades for around $101. However, the price target is 56% higher at $158.

In Q2, revenue surged 48% to $7.8bn, with all three unit delivering double-digit growth. Garena’s the slowest growing these days, but its smash-hit game Free Fire still attracts over 100m average daily active users.

Now, one risk is there’s a lot of e-commerce competition in the Southeast Asian region, particularly from TikTok and Alibaba‘s Lazada. So a price war breaking out is always a threat to margins.

However, Shopee’s on track to generate $1bn in adjusted EBITDA for the full year. And it’s expanding into Latin America.

A forward price-to-earnings multiple of 26 strikes me as solid value for this high-growth stock. Not only is e-commerce and digital finance growing rapidly, but Southeast Asia’s economies are expanding too. So there’s a double growth tailwind, making this a stock to consider.

And finally…

Last, Wall Street’s target for SpaceX stock is 50% higher at $223. Elon Musk’s rocket/satellite/AI firm is expected to grow revenue 139% to $44.8bn this year, then to nearly $200bn in 2028.

However, a lack of profits and a high starting value make this one risky. Only adventurous investors fond of theme park rollercoasters should consider it.

Should you invest £5,000 in Axon Enterprise right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Axon Enterprise made the list?

Ben McPoland owns shares in Axon Enterprise, Sea Limited, and SpaceX.