Imperial Capital Starts TASER International (TASR) at Outperform
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Imperial Capital initiates coverage on TASER International (NASDAQ: TASR) with a Outperform rating and a price target of $27.00, suggesting 22% upside.
Analyst Jeff Kessler commented, "The company is currently the market leader in the conducted electrical weapons (CEW) business and body camera forensics as a cloud-based service. Over 17,000 domestic law enforcement agencies are currently deploying TASER’s solutions, with over 105,000 weapons and over 36,000 Axon cameras sold in 2015. We believe TASER’s unaided brand awareness, very high market share, and its business model gives it significant leading advantage over competitors in non-lethal weaponry that do not provide a similar level of depth in its product portfolio, do not offer a cloud-enabled forensic solution to go along with its hardware offering, and do not have a long-term relationship with the law enforcement agencies."
He added, "Although TASER has historically generated the bulk of its profits from the sale of its hardware/weapons, its TASER Weapons segment margin of about 70% rival those of many software companies. TASER has a razor and razor blade type of a business model and has an organic recurring revenue element with the cartridges under its Weapons segment (estimated use of 3 cartridges/year; 26% of FY15 Weapon revenue), batteries (3% of FY15 Weapon revenue), and warranties (4% of FY15 Weapon revenue)."
Shares of TASER International closed at $22.09 yesterday.
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