Morgan Keegan cuts Taser International (TASR ) estimates and reiterates its underperform rating.
Analyst Brian Ruttenbur says first-quarter revenue is below his already weak expectations. He cuts his $63.6 million 2005 revenue estimate to $41.8 million and 20 cents earnings per share to breakeven. He withdraws his 2006 estimates due to low visibility and lack of confidence.
He is concerned about safety issues, growing litigation, potential usage regulation, lower than expected sales, and weak outlook.
Ruttenbur is convinced the law enforcement community values TASER products and departments currently deploying them will continue their usage. However, he continues to be concerned about the hesitation of new U.S. law enforcement departments to deploy TASERs.