Oppenheimer Downgrades TASER, Notes Shares Are Already 'Fully Valued'

In a report published Thursday, Oppenheimer analyst Andrew Uerkwitz downgraded shares of

to Perform from Outperform while removing a previous $28 price target as the stock appears to be "fully valued compared to where we are in the cycle." Uerkwitz noted that he initiated coverage of Taser in late 2014 with an Outperform rating on the thesis that investors under-appreciated the company's EVIDENCE.com segment. The analyst added that recent studies have shown an acceleration of bookings, higher take-rates and growing average revenue per user, but in order to maintain an Outperform rating, the company needs to transition to new complementary markets. "Effectively, we view the stock price has moved much higher, faster than currently warranted," Uerkwitz wrote. "Valuation is high – the current stock price is priced at our bullish view. The high price may be warranted based on recent quarter's success and acceleration of key metrics, but leaves us with no room to move near/medium-term expectations higher and requires near-perfect execution, in our view." Uerkwitz suggested Taser could move more quickly into complementary segments including private and enterprise security, evidence management beyond video and other officer technology. He further stated that the company's recent acquisition of MediaSolv is "the beginning" stage of entering new segments, but it is also too early to assign value. Bottom line, the analyst stated that he is remains bullish on Taser's fundamentals and the company is an industry leader. However, shares are up 42 percent from early April (versus a 1.1 percent gain in the S&P 500) and investors should await a better entry point and data points.