Sean,
One could take one exposure and develop it to a 1.25 density range (high value density minus low value density) and have it fit on grade three Azo. The same negative would be suitable for enlarging at a grade 2 when using a diffusion light source on an enlarger.

Grade two Azo would require a negative with a higher density range (my tests indicate a 1.60 density range). Both densities that I quoted are when read through the blue channel of a color densitometer. This method of measuring density is important in the event that you are using a pyro developer. The pyro developer stain in the higher densities will add .20 additional density effect when contact printing on Azo and exposing to a conventional flood lamp. If you were to use a light source of higher near band UV output the pyro stain would add additional density effect above what I quoted above. (probably nearly another .10-.15 density units)

If you are planning on using your new enlarger the densities for this light source would hold true for enlarging on Azo as well. Since pulsed Xenon is fairly heavy in near band UV and blue emission from what I understand. (Azo exposes more rapidly to near band UV).

Obviously a great deal depends on your film, developer, and light source. Azo does not require greater overall negative density. It does require a negative of higher negative density range. (contrast in other words).

Not all films are capable of building the density range that Azo accepts. Especially when one gets into expansion of contrast (N+ situations).

Good luck in your efforts.