Taser shares up on report of Toronto police order

January 25, 2008
THE ASSOCIATED PRESS
Toronto Star

But Toronto police say there are no plans to make such a purchase

NEW YORK – Shares of stun-gun maker Taser International Inc. climbed today after an analyst upgraded the stock and another said the Toronto Police Service could place a large order for Taser products next year.

Toronto police said this afternoon that there are no plans to make such a purchase.

Shares of the Scottsdale, Ariz.-based company picked up 82 cents (dollar figures U.S.), or 8.5 per cent, to $10.52 in heavy midday trading. The stock has ranged from $7.44 to $19.36 over the past year.

Feltl & Co. analyst Richard Ryan upgraded the stock to "Buy" from "Hold," noting a recent pullback in share price. At Yesterday's close, the stock was down about half from its 52-week high of $19.36 set in October, and has lost almost a third of its value in 2008. "This period of weakness could be related to a series of (strange) news releases primarily relating to old patent infringement issues from a couple of Taser competitors, combined with a rather direct response from Taser management," Ryan wrote in a client note. "During this same time, Taser enjoyed a successful PR campaign with its new consumer Taser at the Consumer Electronics Show".

Earlier this month, Stinger Systems Inc. said it asked the U.S. Patent Office to review a patent related to Taser's M26 stun gun.

The analyst said Taser's new products have increased its revenue dramatically, and items like its C2 personal protection device should lead to more growth.

Jefferies & Co. analyst Matthew McKay said in a client note that the Toronto Police Service is asking for funding to provide Taser stun guns for 3,000 officers. McKay kept a "Buy" rating on the stock, with a price target of $20 per share.

Late today, Mark Pugash, a spokesperson for Toronto Police, said reports of a Taser purchase being imminent are wrong. "While Chief (Bill) Blair has said he would like to equip his front-line officers with Tasers, the law in Ontario would have to be changed before this could happen. "Then, of course, there would be the issue of money being made available for such a purpose."