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NEW YORK (AP) — A J.P. Morgan analyst on Tuesday raised his rating for Taser International Inc., maker of electronic-shock devices, to "Overweight" from "Neutral," saying that the company's profits should soon get a boost from stabilizing demand.
THE OPINION: Paul Coster also raised his price target for the stock by $1.50 to $7.50. He said that while Taser still needs to show that it can post profitable growth, it appears that local governments are starting to upgrade devices used by their police departments and other emergency workers.
Coster noted that the company recently announced a pair of orders from agencies in California and Florida totaling about $850,000, two states that were significantly hit by the weak economic conditions of the past few years.
Meanwhile, after a long period of investing in new products with mixed results, the company is at a point where it can slow its rate of product introductions, which had previously been a drag on its profitability, he said.
THE SHARES: Unchanged at $5.99 in afternoon trading. Over the past 52 weeks, the company's shares have traded between $3.96 and $6.49.