Taser's Stock Drops After Analyst Downgrade

MarketWatch Pulse

Taser International's stock slumped 2.7% in premarket trade Wednesday, after analyst Paul Coster at J.P. Morgan downgraded it to neutral from overweight, saying the recent run up in price has made too expensive for his liking. The stock, which closed Tuesday at a near 10-year high, has more than doubled off its July 16 closing low of $10.78. Coster said the stock is now trading at a 45% premium to the five-year average valuation on a price-to-projected-earnings basis. "The stock has gone through our $20 price target, and although we remain positive on [Taser's] growth prospects, we are going to the sidelines at this price level," Coster wrote in a note to clients. "We look for pullbacks to potentially become more constructive." The stock has soared 47% year to date, while the S&P 500 has gained 12%.

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