U.S. Markets closed

Taser shares fall after analyst cuts rating

NEW YORK (AP) -- Taser International Inc. shares tumbled Thursday, after a JPMorgan analyst cut his rating for the company, saying that the stun gun maker's shares may have hit their peak.

THE SPARK: Analyst Paul Coster cut his rating for Taser, which also makes cameras for police use, to "Neutral" from "Overweight," noting that the company's shares have risen 50 percent over the past two months. He maintained his price target of $9.

THE BIG PICTURE: On Wednesday, Taser shares rose as high as $9.26, before closing at $9.02, marking the company's highest stock price since April 2008.

The shares have been on their way up since July and spiked last month after the company announced significantly better-than-expected third-quarter results.

THE ANALYSIS: Coster said he thinks the shares have reached their fair value.

He said that while he continues to believe that Taser's focus on growth through customer upgrades and international expansion could result in better-than-expected results, it's unlikely that the company will be able to significantly boost its profitability in the near term.

THE SHARES: Down 59 cents, or 7 percent, to $8.43 in afternoon trading, after dropping as low as $8.27 earlier in the day. Over the past 52 weeks, the company's shares have traded between $3.96 and $9.26.