iRobot Corporation (IRBT) PT Lowered to $51 at Piper Jaffray

Piper Jaffray analyst Troy Jensen lowered the price target on iRobot Corporation (NASDAQ: IRBT) to $51.00 (from $64.00) while maintaining a Neutral rating.

The analyst commented, "Q3 results exceeded expectations, but the initial outlook for Q4 and 2020 was fairly dismaland our EPS estimates are coming down meaningfully. The destruction in earnings is dueto recent price increases related to tariff expenses, which are having a material impact onunit demand, especially at the high-end. Given price increases haven't worked, iRobot willnow be absorbing these expenses and anticipating a 500+ bps reduction in gross marginsfor 2020. We believe international growth of 25% (Europe 27%, Japan 40%) provides aglimpse of what growth could look like without tariff increases, but until US/China tradeissues get resolved, we believe iRobot will continue to struggle in their biggest market,making it a hard stock to own. We reiterate our Neutral rating but lower our PT to $51."

You May Also Be Interested In

• Bernstein SocGen Group Upgrades Analog Devices (ADI) to Outperform
• Moderna (MRNA) PT Raised to $89 at Morgan Stanley
• BofA Securities Upgrades Moderna (MRNA) to Neutral