Monday, January 20, 2014

Taser Drops 4% as JPMorgan Cuts Stock to Neutral

Taser International (TASR) has been on a tear–and JPMorgan says it’s now time to take profits on the maker of stun guns and other products.

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As I noted yesterday, Taser’s been on quite a roll–the stock has gained more than 30% during the past month of trading. At that’s reason enough for JPMorgan’s Paul Coster, Mark Strouse and Paul Chung to cut its shares to Neutral from Overweight. They write:

We are downgrading TASR to Neutral based on valuation. The stock has increased 36% in the past two weeks (SP500 down 3.7%), is up over 30% YTD, and is trading very close to our December 2014 price target of $12.00. While we remain constructive regarding TASR's fundamentals owing to the ECD upgrade cycle and adoption of the video solution, we believe risk/reward is now balanced and we look for pullbacks to potentially add to positions.

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Taser has dropped 4% this morning after gaining 33% during the past month. That gain would have put it in the top-ten in the S&P 1500 if it were a member of  the index, behind Questcor Pharmaceuticals (QCOR), which has gained 36%, healthcare company Amedisys (AMED) and Affymetrix (AFFX), which has gained 44%, among others.

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