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Shares of Taser rise after Atlanta Police Dept buys body cameras

A police officer wears a body camera.
Getty Images
A police officer wears a body camera.

Shares of Taser International rose 4 percent in late-session trade after the firm announced the Atlanta Police Department will purchase 1,015 body cameras from Taser's subsidiary Axon.

"We view the announcement as a positive as the [body-worn camera] program with the [Atlanta PD] had been delayed on several occasions over the past two years as Atlanta-based competitor, Utility, had sought help from local courts to block the deal after losing the contract to Taser," Dougherty analyst Jeremy Hamblin told CNBC.

Dougherty has a "buy" rating on TASR and a $34 per share price target, nearly 29 percent upside from Tuesday's close of $26.42.

TASER 5-day performance


Taser received the order for the Axon Flex and Body 2 cameras in the third quarter of 2016, and the Atlanta Police Department requested an eight-month staged deployment starting in 2017.

"With Atlanta on board, our Axon solution has now been selected by more than 50 percent of major cities in the U.S.," said Taser CEO Rick Smith, in a statement. "That means that more than 30 of the country's largest agencies have seen the potential in our solution for making police work smarter and communities safer."

With Wednesday's upside move, TASER shares posted their third-straight day of gains.