Jefferies Upgrades Taser Rating
Jefferies upgraded its investment recommendation on Taser International (TASR ) to buy from hold and raised its target to $7 from $6 on valuation.
Analyst Matthew McKay tells Standard & Poor's MarketScope large short positions in the stock add fuel to the fire for an upgrade after several due diligence calls suggest order volumes may have bottomed and large opportunities exist. He believes those checks, coupled with a more attractive valuation after a continued decline, suggest a potential turnaround in stock performance.
He raised his 12 cents 2006 EPS estimate to 14 cents and his 25 cents 2007 forecast to 26 cents. He says the easy money was made in premarket trading Oct. 24 but the long-term trend and business are starting to firm up, and improvements are expected.